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Kalaburagi district in Karnataka doubles property tax collection to INR 23 crore in FY 2024-25

#Taxation & Finance News#India#Karnataka
Last Updated : 21st Mar, 2025
Synopsis

Kalaburagi district in Karnataka has recorded a historic INR 23 crore in property tax collections from gram panchayats in FY 2024-25, more than doubling its previous high of INR 11 crore. This increase is attributed to systematic assessments, digitization through Panchatantra-2, stricter enforcement, and targeted collection drives under Rural Development Minister Priyank Kharge. Major industrial units, including Rajshree Cement and Ultratech Cement, contributed significantly after reassessments. This achievement aligns with similar efforts in Bengaluru and Hyderabad, where improved tax administration and digital tools have boosted municipal revenues, highlighting the importance of efficient local governance in enhancing fiscal performance.

In the fiscal year 2024-25, Kalaburagi district in Karnataka achieved a remarkable milestone by collecting INR 23 crore in property taxes from its gram panchayats. This amount is more than double the previous average annual collections of INR 10-11 crore, with the highest prior collection being INR 11 crore.


This significant increase resulted from systematic assessments and rigorous collection measures implemented under the leadership of Rural Development Minister Priyank Kharge. The district comprises 261 gram panchayats under the rural development panchayat raj department. An initial property survey and valuation exercise escalated the tax demand in these gram panchayats from INR 13 crore to INR 36.6 crore.

Several stringent measures contributed to the increased collections, including property tax assessment, registration in Panchatantra-2, issuance of notices to defaulters, tax payment drives, and assigning collection responsibilities to Panchayat Development Officers (PDOs) and bill collectors. Additionally, public access to Panchatantra-2 and the provision of Point of Sale (POS) machines in every village panchayat facilitated collections.

Major industrial units, including cement and sugar factories, which previously underpaid taxes, were properly assessed and notified for outstanding dues. Significant collections included INR 2.50 crore from Rajshree Cement, INR 1 crore from Ultratech Cement Factory, and INR 70 lakh each from Renaka Sugars, KPR, and NSL factory.

Kalaburagi Zilla Panchayat CEO Bhanwar Singh Meena stated that they gave responsibility to PDOs and bill collectors and followed up. They are giving notice to those who do not pay tax. This is a tax collection that could never happen this time.

This achievement in Kalaburagi reflects a broader trend of improved property tax collections across various regions. For instance, Bengaluru's municipal corporation, the Bruhat Bengaluru Mahanagara Palike (BBMP), collected INR 4,604 crore out of its property tax target of INR 5,210 crore for the fiscal year 2024-25, representing approximately 88.36% of the target. BBMP also issued 2.25 lakh e-Khatas since the implementation of e-Khata in October 2024.

Similarly, the Greater Hyderabad Municipal Corporation (GHMC) set a property tax collection target of INR 2,000 crore for the financial year 2024-25. As of March 7, 2025, the corporation collected around INR 1,550 crore. GHMC also announced a one-time settlement scheme offering a 90% waiver on property tax arrears to encourage defaulters to clear their dues.

These examples underscore the importance of systematic assessments, rigorous collection measures, and the use of technology in enhancing property tax collections. They also highlight the role of local governance and administrative efficiency in achieving fiscal targets, which are crucial for funding public services and infrastructure development.

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