BBMP targets unregistered properties in tax overhaul in Bengaluru

In a sweeping effort to revamp property tax collection, the Bruhat Bengaluru Mahanagara Palike (BBMP) is on a mission to bridge the gap in revenue from unregistered properties. As per data, out of the city's estimated 4 million properties, only 2.02 million properties possess 'A' or 'B' khatas and actively contribute to BBMP taxes.
Official records indicate Bengaluru comprises 1.34 million 'A' khata properties and 680,000 'B' khata properties, yet only 2.02 million properties are in the tax-paying fold. BBMP estimates over 1.5 million properties lack 'A' or 'B' khata documentation, rendering them exempt from property tax.

To address this disparity, BBMP is starting a comprehensive program aimed at identifying and integrating these unregistered properties into the khata system. This would enhance the city's revenue collection efforts significantly.

BBMP's Chief Commissioner, Tushar Giri Nath, recently shed light on a concerning trend— property owners deliberately avoid 'B' khata registration to circumvent property taxes. Responding to this challenge, BBMP is actively procuring building-plan approval details from the town planning division. This strategic move aims to identify properties without khata documentation, subjecting them to property tax regulations and ensuring a fair and comprehensive coverage.

BBMP's revenue data reveals that property taxes are received from around 1.36 million residential properties, slightly over 100,000 non-residential properties, 8,062 industrial properties, and nearly 450,000 other properties.
BBMP aims to collect Rs 4,790 crore in property tax, including cess, for the fiscal year 2023-24. This surpasses the previous year's collection of Rs 3,155 crore in 2022-23. Impressively, by the first week of November, BBMP has already gathered over Rs 3,000 crore for the ongoing financial year.

As part of its efforts, BBMP has initiated stringent measures against tax defaulters. This includes the seizure of vehicles, freezing bank accounts, and sealing commercial properties—a strategic effort to boost tax collection. BBMP officials highlight the persistent challenge of defaulters who have either not paid or underpaid taxes over several years.

Deputy CM DK Shivakumar recently underscored the urgency, revealing that property tax arrears in Bengaluru city have accumulated to a staggering Rs 430 crore. BBMP's revenue officials have issued notices to over 10,000 defaulters, collectively responsible for a debt of approximately Rs 300 crore owed to BBMP.
The city's tax overhaul signifies BBMP's commitment to financial transparency, fair tax practices, and a robust revenue system to fuel Bengaluru's growth and development in the coming years.

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BBMP targets unregistered properties in tax overhaul in Bengaluru

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