BBMP Property Tax Amendment Bill passed, penalty on tax dues to come down in Bengaluru
Bengaluru: The 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 Karnataka Assembly on Tuesday.
Deputy Chief Minister D.K. Shivakumar, who is also the Bengaluru City Development minister, tabled the Amendment Bill in the house in the post-lunch session.
With the passing of this Amendment Bill, the penalty amount has been halved, saving Bangaloreans a whopping Rs 2,700 crore.
The BBMP will be able to collect penalties worth Rs 1,000 crores, said Shivakumar.
The amended law 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.
It also has a provision for a special rebate to poor segments of the society. Government residential buildings and buildings in slums are exempt from property tax penalties. Buildings up to 1,000 square feet which are used for own use are also exempt.
Under the Amendment Bill, penalties on 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.
“This is a taxpayer-friendly amendment. We have brought this Bill to help the common people though it is a burden on the government,” Shivakumar told the Assembly.