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Cong govt in Karnataka slashes property tax penalties by 50 pc in Bengaluru, relief for taxpayers
The BBMP Amendment Bill 2024 brings down the penalty on property tax dues by 50 pc in Bengaluru city limits, was passed in the Legislative Assembly on Tuesday.
The tax-payer-friendly BBMP Amendment Bill 2024, which brings down the penalty on property tax dues by 50 per cent in Bengaluru city limits, was passed in the Legislative Assembly on Tuesday.
Karnataka Deputy Chief Minister DK Shivakumar, who is also the Bengaluru City Development Minister, tabled the tax-payer-friendly Amendment Bill in the Legislative Assembly in the post-lunch session. With the passing of this Amendment Bill, the penalty amount is halved, saving Bangaloreans a whopping ₹2,700 crore. The BBMP will be able to collect penalties worth ₹1000 crore.
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This important Amendment will benefit a total of 13-15 lakh people in Bengaluru city including 5.51 lakh taxpayers, 5-7 lakh people outside the property tax bracket and 3 lakh partial property taxpayers.
The Amendment Bill has a provision for a special rebate to poor segments of society. Government residential buildings and buildings in slums are exempt from property tax penalties. Buildings up to 1,000 square feet that are used for own use are exempt from property tax penalties.
Under the Amendment Bill, residential and mixed-use properties will have to pay property tax penalties only for a maximum period of 5 years irrespective of the default duration. Interest has been waived off for dues beyond five years.
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"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 Shivakumar told the Legislative Assembly.
Bangaloreans had to pay heavy penalties as the previous BJP government had passed the previous amendment bill, which doubled the penalties on property tax dues resulting in a huge burden on the property tax payers. The new amendment passed by the Congress government has reduced the penalty burden on Bangaloreans significantly.
