Despite Covid pandemic, Bengalureans paid Rs 1,717 crore property tax
Bengalureans, don’t expect BBMP elections for at least 1.5 years!
Bengaluru property tax collected in first 3 months of current fiscal is on par with around Rs 1,700 crore collected in each of previous 2 years
BENGALURU:
Just a fortnight ago, the largest-read English news daily of Bengaluru was pushing for a property tax relief on the lines of Gujarat, which was turned down by BBMP Chief Commissioner Gaurav Gupta. As it turns out, the giant media house had quite clearly misread the sentiments of namma big-hearted Bengalureans, who have shown that they are quite willing to pay this essential tax despite the hardships connected with the Covid-19 Pandemic. The figures show that Bengalureans have paid around Rs 1,700 crore in property tax in the first three months of the fiscal year during the last three years even as Bengaluru, alongside Karnataka and the entire country, has faced the brunt of the pandemic over the last nearly two years.
From BBMP’s side, property taxes have not been hiked since the last six years. However, the civic agency is looking to bring back the old capital value system of property tax collection which it had junked nearly a decade ago. As a matter of fact, civic officials have put in a lot of preparatory efforts on the capital value system and are now awaiting a nod from the Union government.
Also Read: BBMP chief calls for ‘Khata Mela’ across Bengaluru https://thebengalurulive.com/bbmp-chief-calls-for-khata-mela-across-bengaluru/
As per data received from BBMP, in the first three months (April, May, June) of the current fiscal year 2021-22 and taking into account the 5% rebate in these months, the civic agency has collected Rs 1,718.61 crore property tax – on par with the previous two years’ collection.
‘Utility bills relief was needed’
“On an average Bengalureans pay property tax ranging from a minimum of Rs 2,000 to the highest level, depending upon the site measurement, every year. Paying property tax during the pandemic doesn’t pinch the pocket but the government should have thought of at least giving 50% exemption in power and water bills — which is a recurring expense — as most of the citizens were locked in their houses from April till the unlocking began,” said a citizen who wished not to be quoted.
As usual, Mahadevapura zone (Rs 439.9 crore) tops the property tax collection — the vast area is home to most of the city’s IT companies — followed by East (Rs 334.3 crore) and South zones (Rs 288.64 crore).
The data also shows that Bommanahalli zone collected Rs 168.8 crore, Dasarahalli zone Rs 47.22 crore, Rajarajeshwari zone Rs 117.73, West zone Rs 191.9 crore, and Yelahanka zone Rs 130.12 crore, taking the total collection to Rs 1717.61 crore.
At a recent review meeting, BBMP Chief Commissioner Gaurav Gupta had expressed happiness over the amount of property tax collected in the first three months of the current financial year. He stressed holding a ‘Khata Mela’ to bring more properties in the property tax net and said newly constructed buildings should be bought under the property tax net.
Journey of Bengaluru’s property tax system
2008-09: The original SAS 2008 was introduced with unit area rates and the zonal classification of the prevailing guidance values. The cesses included Health cess (16%), Library Cess (5%), and Beggar Cess (3%).
2011-12: Introduction of the SWM Cess based on the building area and its usage.
2016-17: SAS 2016 increased the unit area rates and reclassified the zonal classification as per the prevailing guidance values. However, the increase in property taxes in comparison with the previous years was limited to 20% and 25% for residential and non-residential properties respectively.
2021-22: Introduction of 2% Urban Transport Cess on the property taxes payable.
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