To mop up more revenue and collect property tax dues from defaulters, the cash-strapped civic body is framing rules that will allow it to attach immovable properties and freeze bank accounts of tax defaulters. Property tax remains one of the biggest revenue sources for the Bruhat Bengaluru Mahanagara Palike (BBMP).
The civic body has already achieved record property tax collection this year and hopes to cross ₹3,000 crore by the end of the fiscal. According to senior revenue officials, the BBMP has collected over ₹2,995 crore so far. Last year, it had collected ₹2,781 crore.
BBMP’s Special Commissioner (Revenue) Deepak R.L. told The Hindu that rules are in the approval stage. “We had hoped to put in place a mechanism by the end of the current fiscal. We now hope that the new mechanism aiding recovery of dues will be in place at least in the next financial year,” he said.
The outstanding dues that tax defaulters owe the BBMP now stand at ₹250 crore.
Senior Revenue officials said that under the Karnataka Municipal Corporations Act, 1976, the civic body could only issue demand notices and distress warrants to tax defaulters. If the dues were still not cleared, the civic body could then attach movable assets, auction the same to recover the dues.
However, under the new BBMP Act, 2020, the civic body can seize immovable properties and freeze bank accounts of the tax defaulters. The rules for the same are now being framed, the official explained.
Mr. Deepak said the tax collection this year has been a record despite lockdown during the second wave and economic slowdown. He attributed this to renewed focus, setting targets for each revenue official, intense monitoring and follow up, especially with regard to collecting arrears from tax defaulters.
