Facing paucity of funds, Bruhat Bengaluru Mahanagara Palike (BBMP) has proposed a hike of 25% in property tax in residential areas and 30% in commercial areas — a move that will help raise the revenue collection of the civic agency by Rs 500 crore if cleared by the state government.
The Karnataka Municipal Corporation Act mandates revision of property tax once in three years, said BBMP commissioner N Manjunatha Prasad, who has forwarded the proposal to the State government for endorsement.
There are about 1.9 million registered properties in Bengaluru, out of which around three lakh owners default on payment every year.
BBMP last revised the property taxes in 2016. However, the civic agency has been under constant financial pressure as it has repeatedly failed to reach its revenue collection targets. For instance, BBMP collected only Rs 2,000 crores of a target of Rs 3,000 crores in FY 2018-19.
Additional revenue will help the civic body to undertake new civic projects and complete the ongoing projects in the city.
