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BBMP collects 95% of property tax target with tech-led strategy and OTS scheme

#Taxation & Finance News#India#Karnataka#Bangalore
Last Updated : 17th Apr, 2025
Synopsis

The Bruhat Bengaluru Mahanagara Palike (BBMP) has managed to collect 95% of its property tax target for FY25, gathering INR 4,930 crore against the projected INR 5,210 crore. This success was largely attributed to measures like IT-driven follow-ups, a one-time settlement scheme, and robust arrears recovery protocols. While Yelahanka and Mahadevapura zones surpassed their targets, zones like Bommanahalli and RR Nagar fell behind. With an ambitious target of over INR 6,000 crore set for FY26, BBMP plans to improve compliance without raising tax rates, which have remained unchanged since 2016.

The Bruhat Bengaluru Mahanagara Palike (BBMP) has collected INR 4,930 crore in property taxes for the financial year 2024-25, achieving 95% of its targeted INR 5,210 crore. This substantial progress in revenue collection was made possible through a combination of tech-enabled monitoring systems, an intensive follow-up mechanism, and the rollout of a one-time settlement (OTS) scheme.


Officials reported earlier this week that the civic body had also introduced structured Standard Operating Procedures (SOPs) for dealing with arrears, which significantly contributed to the improved tax compliance among property owners.

Among the city's eight zones, Yelahanka stood out by surpassing its assigned target by 4%, having collected INR 465 crore. Mahadevapura, a zone with high commercial and residential property concentration, collected INR 1,310.5 crore slightly above its target. These two zones were marked as top performers. In contrast, Bommanahalli and RR Nagar lagged behind, collecting only 84% and 88% of their respective targets.

It was observed that over 60% of the total revenue was concentrated in Mahadevapura, East, and South zones. These zones include areas with dense IT parks, high-end residential properties, and commercial hubs, which contribute significantly to the city's tax base.

Special Commissioner for Revenue, Munish Moudgil, noted that the civic body's success was rooted in a disciplined and technology-backed strategy. He added that their reliance on IT tracking and consistent on-ground engagement with property owners helped boost collections. Moudgil expressed confidence that the BBMP could surpass INR 6,000 crore in property tax collections for FY26, despite not proposing any hike in property tax rates. Notably, the city's tax rates have not been revised since 2016.

This is not the first time BBMP has shown aggressive tax collection efforts. In previous years as well, the civic body had adopted digital tracking systems and GIS mapping to identify defaulters and improve transparency. The continuation of such data-driven policies is expected to help address gaps in underperforming zones.

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