The BBMP missing the property tax collection target by a huge margin has emerged as a cause for concern. It had targeted ₹2,600 crore for 2017-18 (excluding cesses and betterment charges), but the revised estimate pegs it at ₹1,777.4 crore, which is only 68.4% of the estimated potential.
In the previous fiscal, BBMP was successful in collecting 75% of the target, an analysis by Janaagraha Centre for Citizenship and Democracy shows.
BBMP Commissioner N. Manjunath Prasad maintained that to date, 16.5 lakh of 19 lakh properties have paid the tax, and that the civic body is expected to collect more taxes in the coming month.
Despite the poor performance, BBMP has given itself ambitious targets. For 2018-19, it expects to collect ₹2,675 crore by way of property tax, which, officials say, they are confident of meeting.
A Revenue Vigilance Cell under Special Commissioner (Finance) will be formed ‘to effectively monitor and garner additional resource mobilisation’. Mayor R. Sampath Raj said that the vigilance inquiry has been institutionalised in the form of a Vigilance Cell and a Total Station Survey of 800 top tax-paying properties, including commercial complexes, malls, tech parks, residential enclaves, proposed in the budget.
The top hundred commercial complexes, malls, tech parks and residential enclaves paying property tax in each of the eight zones will be identified and subjected to Total Station Survey, the budget proposed. This will hopefully decrease tax evasion.
The budget recommends that the State government waive property tax for all ex-servicemen, who are presently given a 50% tax rebate.
On the brighter side, since the 2013-14 fiscal to 2017-18, there has been a 25% increase in property tax collection.
BBMP fails to mop up resources from non-tax sources
The 2018-19 budget has set lesser targets across the board for advertisement revenues, OFC fee, parking fee, town planning and trade licences. This, despite promising better regulation and new policy for most of these sectors.
For instance, as against a target of ₹126.91 crore for advertisement revenue last year, this year, it’s been downgraded to ₹79.35 crore. OFC revenue target, too, has dropped from ₹300 crore last year to ₹200 crore.
Officials argued that the targets for these sectors are much higher than the revised estimates of the 2017-18 budget. The BBMP had mopped up a meagre ₹28.69 crore through advertisement revenue and ₹50 crore through fees for laying OFC.
