BBMP considers hiking property tax to 25-30%

The Karnataka Municipal Corporations Act stipulates that the BBMP can levy anywhere between 15% and 30% property tax for residential and non-residential properties.

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Under pressure to raise funds, the Bruhat Bengaluru Mahanagara Palike (BBMP) has mooted the idea of hiking the tax on residential properties by 25% and non-residential ones by 30% in a bid to raise an additional Rs 500 crore.

The BBMP has submitted a proposal to the standing committee on Tax and FInance of the corporation, raising the possibility of the hike. The proposal will need to be cleared by the committee before it will be placed before the council for approval. If approved, the hike will come into effect from April 1 2019.

Confirming the development, BBMP Commissioner Manjunath Prasad told Times of India, "Revision of property tax is being done as per the Karnataka Municipal Corporation Act which mandates revision once in three years. I have forwarded a note to the Council in this regard."

The Karnataka Municipal Corporations Act stipulates that the BBMP can levy anywhere between 15% and 30% property tax for residential and non-residential properties.

After the last revision in 2016, property tax went up to 20% for residential and 25% for non-residential properties in the city. The BBMP's tax collection went up to Rs 1,725 crore in the process.

BBMP officials believe that a hike in property tax is necessary for the corporation to raise funds. However, citizens can point to a list of complaints against the BBMP to highlight that taxpayers money is not being used appropriately.

Over the last two months, the Karnataka High Court has pulled up the BBMP on a number of occasions highlighting its inaction in solving issues like garbage burning, pothole repair, storm water drain encroachment, lake clean up and so on.

Read:‘If BBMP can’t fix potholes, will assign to other authority’: K’taka HC tells civic body

Read: Karnataka HC reprimands BBMP over illegal hoardings, yet again