The cash-strapped Bangalore Metropolitan Transport Corporation (BMTC) has knocked on the doors of the State government after the Bruhat Bengaluru Mahanagara Palike (BBMP) turned down its request for an exemption from paying property tax.
The BMTC has defaulted on property taxes amounting to ₹22.22 crore, which includes interest of ₹7.11 crore. It last paid property tax in 2015–16. The transport corporation is citing ‘public service’ as the reason for seeking an exemption. According to officials, the BBMP has exempted Bangalore Development Authority, Bangalore Water Supply and Sewerage Board, Karnataka Housing Board, and several other government agencies from paying property tax.
Making a case for an exemption, N.V. Prasad, BMTC managing director, said, “The BMTC is serving the public by operating a mass transit system. The corporation is also facing financial distress as it incurred loss of over ₹200 crore in the previous financial year.”
- BMTC has defaulted on ₹22.22 crore in property tax
- It last paid property tax to the BBMP in 2015–16
- Highest tax paid on the following properties: Shantinagar TTMC – ₹1.43 crore, Banashankari TTMC – ₹60 lakh, Jayanagar TTMC – ₹51 lakh
The BBMP incurred losses owing to various factors such as increased operational cost, including hike fuel price, and salary of staff. “However, the BBMP has rejected our request. The matter is now before the government for consideration,” he added.
The BMTC has 83 properties in the BBMP limits. These include bus stands, traffic and transit management centres (TTMCs), and depots. In 2015–16, it had paid the highest tax for Shantinagar TTMC (₹1.43 crore) followed by Banashankari TTMC (₹60 lakh), and Jayanagar TTMC (₹51 lakh). TTMCs are also a source of commercial revenue for the corporation, as it has rented out space to various agencies, including BMRCL, Transport Department, and Excise Department. In some centres, space has been rented out to big brands to run commercial establishments.
“After the BBMP rejected our request, the Transport Minister wrote to the Chief Minister seeking an exemption from paying tax, citing that the BMTC is public service-oriented government agency,” said an official.
