Bengaluru Civic Body Collects Just Rs 463 Crore Property Tax Through OTS.

BENGALURU: The BBMP’s ‘One Time Settlement’ (OTS) initiative, aimed at recovering overdue taxes, has seen a lackluster response. With the July 31 deadline nearing, the civic body has collected just Rs 463.03 crore, leaving Rs 624.88 crore unpaid.

BBMP officials have collected Rs 73.9 crore in the Bommanahalli zone, with Rs 82.77 crore outstanding. In Dasarahalli, Rs 16.37 crore has been gathered, while Rs 22.21 crore remains. The East zone has seen Rs 70.57 crore collected, with Rs 87.14 crore yet to be collected. In Mahadevapura, Rs 109.37 crore has been collected, leaving Rs 140.04 crore outstanding.

In RR Nagar, the collection stands at Rs 33.78 crore, with Rs 49.74 crore still to be collected. The South zone has received Rs 71.94 crore, awaiting Rs 96.63 crore. The West zone has collected Rs 50.83 crore, with Rs 97.18 crore remaining. In Yelahanka, Rs 36.27 crore has been collected, with Rs 49.16 crore still unpaid.

An official noted, “Despite the launch of OTS on February 27, which aimed to ease property tax burdens by waiving 50% of penalties and interest, many property owners with overdue taxes have not participated. So far, only Rs 463 crore has been collected, well below the expected Rs 1000 crore.

Out of 5.51 lakh property tax defaulters, only 1.52 lakh have settled their dues under the scheme, leaving 3.24 lakh defaulters yet to take advantage of the opportunity. The BBMP had hoped for significant tax revenue through this initiative but has faced a tepid response from taxpayers.”

Despite issuing notices to 3.95 lakh property owners for overdue taxes, only 70,000 have settled their dues. The majority of property owners have not responded to the notices. Additionally, 5 to 7 lakh properties are yet to be brought under the tax net.

“While some property owners have participated, many have not responded to the notices. The BBMP had anticipated a substantial increase in tax revenue through this scheme, but the response has been lukewarm,” added another official.

BBMP Chief Commissioner Tushar Giri Nath stated, “It is time to act now and take advantage of OTS. We are encouraging citizens to utilize the scheme before July 31.

Following a review meeting at the BBMP head office on Monday, we found that approximately 4 lakh property owners are eligible, with 80,000 having already settled their dues.

The remaining 3.20 lakh property owners have until July 31 to avail themselves of the scheme and clear their pending taxes. For any queries regarding OTS, including payment details and locations, you can dial the toll-free helpline at 1533 for assistance.”

Meanwhile, regular property tax collection has also been slow. Between April and June last year, the BBMP collected Rs 2,287 crore, whereas this year, up to July 7, only Rs 1,758 crore has been collected.

This marks a decrease of Rs 528 crore from the previous year. The implementation of the OTS scheme is attributed to this decline. As of July 7, the collection figures are Rs 139.22 crore in Yelahanka, Rs 398.79 crore in Mahadevapura, Rs 60.37 crore in Bommanahalli, Rs 125.95 crore in RR Nagar, Rs 203.85 crore in the South zone, Rs 211.54 crore in the East zone, and Rs 294.21 crore in Dasarahalli.