There is good news for property owners in the city. Those who have not paid the taxes in the first term, can now pay it without additional levies. Earlier, there was a penalty of 2 per cent per month after the rebate period was over. This has been scrapped.
In the last six months, the Bruhat Bengaluru Mahanagara Palike (BBMP) has collected around Rs 1,555 crore in property tax, and it hopes to collect about Rs 1,500 crore in the second term. According to the Karnataka Municipal Act, those primarily liable to pay property tax, can pay the taxes in two equal instalments – first before May 30, and second by November 29 of each financial year. However, the owner, occupier or person primarily liable to pay property tax, may choose to pay in one instalment.
M Venkatachalapathy, joint commissioner (revenue), said that many property owners have already obtained 5 per cent rebate by paying first term payment or paying for the full year. “Every year, a five per cent rebate is given for those who pay taxes by April and May, but this year, this was extended till June.” He said the next three months witnessed an additional levy of 2 extra per cent for each month; by September – late tax payers were paying six per cent in levies.
“But from October – the beginning of the second term of property tax payment – we are not charging the 2 per cent interest. We want people to utilise this incentive and pay their taxes” Venkatachalapathy said.
From December 1 though, the penalty will kick in. BBMP had initially hiked property tax for 2016-17, the current financial year. But after opposition from citizens, the Congress-JDS alliance governing the BBMP, had to roll back the hike. In fact, after the hike, the council had estimated a revenue boost of Rs 1,100 crore over last year’s collection, which stood at Rs 1,820 crore – the highest since BBMP’s inception on January 17, 2007. This year, the BBMP has a property tax target of Rs 2,900 crore of which, it has already collected Rs 1,555 crore.
Credits Bangalore Mirror