Property tax hike next on agenda to mop up funds in Bengaluru

Bengaluru is one of the prime revenue generators for the state and there are around 18 lakh properties in the Bruhat Bengaluru Mahanagara Palike’s ambit.
Representative Image
Representative Image(Photo | Amol Gaitonde)

BENGALURU: After hiking the rates of fuel and liquor, the State government is once again discussing a hike in property taxes in Bengaluru.

Bengaluru is one of the prime revenue generators for the state and there are around 18 lakh properties in the Bruhat Bengaluru Mahanagara Palike’s (BBMP) ambit. As per BBMP records, as on July 1, the corporation has collected Rs 1654.47 crore as property tax in this financial year. In FY 2023-24, the corporation had collected Rs 2293.81 crore.

A BBMP revenue official explained that the government had extended 5 per cent rebate on tax payment till July, with Lok Sabha elections scheduled from April to June. While this is the reason why the amount collected so far is less, the financial year has just started, and penalties will soon be imposed and push up collection.

It may be recollected that Bengaluru in-charge minister and Deputy Chief Minister DK Shivakumar had also spoken of hiking property tax, but it was put on hold for elections.

BBMP sources said that discussions on hiking property tax have resumed, but the quantum to be hiked is not yet decided. Initially, the proposal was to hike tax by 5 per cent annually, but was put on hold. “Discussions have started. The existing format of collection, based on zones (A-E) will continue. This is being discussed along with bifurcation of BBMP for better administration and tax collection,” the source said.

Former BBMP corporators said that so far, the matter is still under discussion. The government is also discussing increasing the number of properties under its ambit to 20 lakh. Surveys for this are ongoing. “Calculations are still being done. They will be sent to the government for consideration and final decision,” the source added.

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