CAG slams BBMP for failure to collect Rs 95 crore transport cess

BENGALURU: The local civic body is suppose to collect transport cess from every individual in the city to cope with the increasing number of vehicles and to provide better infrastructure. However, a recent report submitted by the Comptroller and Auditor General says that the non collection of transport cess in the last five years has caused revenue loss of close to Rs 100 crore.

In its report on the performance audit review to the Urban Development Department (UDD) and Bruhat Bengaluru Mahanagara Palike (BBMP), the Comptroller and Auditor General has said that the BBMP lost out on revenue of Rs 95.63 crore due to non collection of urban transport cess from 2013-14 to 2016-17.
The report stated, “Scrutiny of records (December 2016) in the office of Chief Accounts Officer, BBMP, and further information collected in August 2017 showed that BBMP had collected property tax of Rs 4,781.62 crore during the years 2013-14 to 2016-17 (as of July 2017). However, BBMP had not collected the urban transport cess.”

BBMP council members have been blamed for failing to realise the issue. “We observed that the BBMP council (on May 2014) had requested the government to withdraw the order that mandated levying property tax. BBMP had said that levying urban transport cess would lead to additional burden on property tax payers. The government informed BBMP (in August 2014) that their request could not be considered in view of the amendments to Karnataka Municipal Council Act, 1976, and instructed them to collect the urban transport cess. Despite this, BBMP did not initiate any action to collect the cess,” the report read.
A BBMP official told The New Indian Express, “The city now has more than 70 lakh vehicles. Better infrastructure has to be ensured. It is because of the council members’ attitude that the BBMP missed out on the revenue.”

The government had amended the KMC Act, asking the BBMP to collect urban transport cess of 2 per cent in property tax from property owners to ensure better infrastructure for vehicles in the city.BBMP Chief N Manjunatha Prasad said, “Yes, the CAG has raised an objection. But the council members are not in favour of cess collection as they feel this will be a burden on them. We have discussed this in council meetings and explained to them the need to collect it. However, we will soon finalise it and send it to the government.”