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BBMP's efforts to increase property tax revenue have fallen short, with collections between April 1 and June 29 this year totaling INR 1,646 crore, 28% less than last year's INR 2,287 crore. This represents only 32% of the targeted INR 5,210 crore. Officials attribute the shortfall to the state's Lok Sabha elections and hope that extending a 5% rebate until July 31 will improve collections. Notably, daily collections picked up to INR 25 crore in the last week of June. Shortfalls vary across zones, with Mahadevapura seeing the highest decline at 38%. BBMP aims to intensify efforts to meet targets.
The Bruhat Bengaluru Mahanagara Palike (BBMP) has been diligently working to increase property tax revenue, but the results have been less than encouraging. Data from TOI shows that the civic body's collection of property tax between April 1 and June 29 this year is 28% less compared to the same period last year. This year, BBMP has managed to collect INR 1,646 crore in property tax by June 29, compared to INR 2,287 crore collected during the same timeframe last year. Advertisement
This year's collection stands at only 32% of the targeted INR 5,210 crore. BBMP officials remain optimistic, attributing the shortfall to the state's engagement in Lok Sabha elections during two of the first three months of this financial year. They highlighted the extension of the 5% rebate for taxpayers until July 31, aiming to enhance collections. Officials pointed to an uptick in daily collections in the week ending June 29 to support their assertion that the situation is improving. During this week, BBMP collected an average of INR 25 crore in property tax per day, surpassing the INR 13 crore daily average required to meet the annual target.
However, the shortfall in collections is not uniform across BBMP's eight zones. Mahadevapura experienced the steepest year-on-year decline at 38%, followed by Yelahanka with a 31% drop, the East zone at 28%, and the South zone at 25%. The other four zones saw a decline ranging from 13% to 22%. Munish Moudgil, Special Commissioner (Revenue) at BBMP, emphasised the need to intensify efforts to narrow the gap and achieve overall targets, despite promising daily collection trends. He pointed out that discrepancies between daily collections and target percentages highlight specific areas requiring rigorous focus.
BBMP officials have pointed to the increase in daily collections during the last week of June as evidence of a positive trend. During this period, their average daily collection amounted to INR 25 crore, significantly surpassing the INR 13 crore needed to achieve their annual target. However, maintaining this positive momentum is crucial to achieving the year's financial objectives. The civic body remains committed to achieving its targets, employing strategic efforts to bolster property tax revenue and address the shortfall effectively.
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