Chief Minister Siddaramaiah on Thursday said steps would be taken to increase the sources of revenue of Bruhat Bengaluru Mahanagara Palike (BBMP). An expert committee would be formed to suggest ways to increase BBMP’s revenue. And, properties that are outside the ambit of taxation would be brought under the tax net.
The Chief Minister was responding to a question raised by BJP member Y.A. Narayanaswamy on the alleged failure of BBMP officials in tapping the property tax potential. They were speaking during the question hour in the Karnataka Legislative Council here on Thursday.
Mr. Siddaramaiah admitted that because of the negligence of the officials concerned property tax collection had not gone beyond Rs. 1,400 crore in the last three years despite the target being over Rs. 2,000 crore (Rs. 2,500 in 2013-14).
He added that he had warned officials to ensure that the target set for property tax collection was reached, otherwise action would be initiated against them. On Mr. Narayanaswamy’s contention that BBMP had the potential to collect Rs. 5,000 crore as property tax, the Chief Minister admitted that he was aware of it. He added that the property tax collection target had been set at Rs. 2,900 crore for the current financial year.
Of the 16 lakh identified properties in the BBMP limits, nearly 2 lakh properties were not under the property tax ambit.
The former Minister V. Somanna said properties in Electronic City and Whitefield in Bengaluru are outside the jurisdiction of BBMP and the civic body was losing a lot of revenue because of that.
Deputy Chairperson Puttanna pointed out that even huge residential apartment blocks that had come up in places like Hosakote and other areas were not paying taxes as per the BBMP rates.
