The urban local bodies (ULBs) in the State, excluding Bruhat Bangalore Mahanagara Palike (BBMP), were being lax in increasing their property tax collections, averred A. Ravindra, advisor to Chief Minister on Urban Affairs.
Speaking at an interactive session at the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here on Friday, he said that property tax was the main source of revenue for the ULBs. While the tax collection is less, the responsibilities of the ULBs have been increasing.
“However, now with funds being sanctioned to the ULBs from the State government, the State Finance Commission and the Chief Minister’s Nagarottana scheme, the pressure on ULBs has eased a bit. This has, perhaps, made them lax in taking steps to increase property tax collections by bringing more properties under the tax net,” he said.
He said that excluding BBMP, the tax collected by other ULBs totalled just Rs. 275 crore. Just 18.36 per cent of the total properties have been covered under the tax net. Of the 26 lakh properties under the other ULBs, 11 lakh properties are yet to be assessed.
The BBMP has been collecting tax from 13 lakh properties, while three lakh properties were yet to be assessed, he said.
Citing examples, Mr. Ravindra said that property tax collection by Mangalore City Corporation was only 22 per cent. The property tax collection by the Udupi City Municipal Council, which used to be 95 per cent, had come down to 50 per cent. The tax collection by the Hubli-Dharwad and Belgaum corporations was 80 per cent.
He said that the various ULBs should effectively utilise the Self-assessment System and encourage citizens to pay property tax. “We cannot change the tax system now. Even if it is to be changed, it will take at least another two years for the new system to be in place. Instead, the ULBs can make tax collections more effective under the existing SAS,” he added.
