The Legislative Assembly on Tuesday adopted the Bruhat Bengaluru Mahanagara Palike (Amendment) Bill, 2024, that seeks to reduce the penalty on property tax arrears by 50% in Bengaluru city limits.
The Bill was adopted without any debate as the Opposition BJP and JD (S) members were staging a dharna in the well of the House demanding suspension of the Ramangara SI in connection with lawyers’ protest.
Piloting the Bill, Deputy Chief Minister D.K. Shivakumar, who also holds Bengaluru City Development portfolio, described the Bill as “people-friendly” while stating that it would help residents of Bengaluru save ₹2,700 crore.
At the same time, the BBMP will also be able to collect penalties worth ₹1,000 crore, he noted.
According to him, the proposed amendment will benefit a total of 13-15 lakh residents in Bengaluru city comprising 5.51 lakh taxpayers, 5 to 7 lakh people who are not paying property tax, and 3 lakh partial property taxpayers.
The Bill has a provision for a special rebate to the poor segments of society, he said. Similarly, government residential quarters and buildings in slums are exempt from property tax penalties. Buildings up to an area of 1,000 square feet which are used for own use are exempt from property tax penalties.
Under the Bill, penalties on residential and mixed-use properties will have to pay property tax penalties only for a maximum of five years irrespective of the default duration. Interest on property tax dues would also be waived for dues beyond five years, he explained.
“This is a taxpayer-friendly amendment. We have brought this Bill to help the common people though it is a burden on the government,” said Mr. Shivakumar.
Residents of Bengaluru had to pay heavy penalties as the erstwhile BJP government had passed the previous amendment Bill which doubled the penalties on property tax dues resulting in a huge burden on property taxpayers, he argued.
