That the BBMP is failing to collect property tax is obvious. While it hoped to mop up at least Rs 3,100 crore from the tax for the year 2018-19, the figures until October show it has managed to collect a mere Rs 1,989 crore.
The collection was equally dismal in 2017-18 as it ended up with just Rs 1,702 crore as against its target of Rs 2,600 crore. The BBMP failed in 2016-17 too, badly falling short of its target of Rs 2,300 crore by collecting just Rs 1,463 crore. “Not even once has the total property tax collected crossed Rs 2,000 crore despite the increasing number of properties in the city,” note civic experts.
“Many estimates indicate that twice the property tax can be collected. But the BBMP is unable to collect it from property owners because not all properties are in the tax net,” points out civic expert Ravichandar, arguing that instead of increasing the tax, the BBMP should focus on making sure that more people pay it. This would do away with the need to hike the tax as the BBMP would get its revenue, he observes.
