Over 60 per cent of the property tax dues that the BBMP is struggling to collect is from just five per cent of major tax defaulters. Out of Rs 595.63 crore dues, Rs 316 crore has to be paid by 335 property owners. That is close to a whooping Rs 1 crore for each property.
BBMP has categorised defaulters into six categories based on the amount they have to pay, and has identified 12,104 property owners as defaulters who have not paid Rs 595.63 crore tax.
Of this, Rs 316.19 crore is from 335 defaulters, while 11,769 defaulters have to pay the remaining Rs 279.44 crore, according to the data compiled by the BBMP.
In the current financial year, the BBMP has collected Rs 1,074 crore taxes against the total tax collection target of Rs 1,600. In 2012-13, the total tax collected was Rs 1,358 crore.
Explaining the problems faced by them in collecting taxes, a BBMP official said in some cases tax inspectors and other revenue officers were not allowed to enter the premises, especially if it was an IT-BT company, on the pretext of security.
“In some cases, our officials are hand-in-glove with the companies. In fact, we had transferred some of the tax inspectors who are working in the same ward for many years, as we feel by working in the same place, they will develop vested interests,” official said.
According to the Chairman, BBMP Taxation and Finance Committee, M S Shivaprasad, officials are not doing their duty. “It is the officials responsibility to collect taxes. We are councillors and do not have executive powers. We can only direct them. Now that we have given a target of Rs 5 crore per-zone-per-week, officials have to meet the target, failing which action will be initiated against them.”
“I have asked the concerned officials to email day-to-day reports of collections,” he said.
On defaulters, Shivaprasad said BBMP authorities were making a list of defaulters in a zone-wise breakup. The Palike is planning to upload them on its website. “We will take legal action against defaulters, either we will attach their rent (if they have any tenants) or confiscate movable properties,” he said.
On the recent showdown of the BBMP with Wipro, which is one among the major defaulters and has to pay Rs 16.47 crore, Shivaprasad said they wanted to confiscate its movable properties.
Most Defaulters in East Zone
BBMP’s east zone has the most number of defaulters. Of 7,601 defaulters (excluding the Rs 25,000 to Rs 50,000 category), 2,180 are from the east zone.
Even among major defaulters, of 335 defaulters who have to pay Rs 316.19 crore, 97 are from the East, and owe dues amounting to Rs 109.52 crore.