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Bengaluru: Glitches cut property tax collection by half

Collection of property tax during April is high as the civic body offers 5% discount on property tax during the month.

BENGALURU: The glitch in the BBMP’s online property collection system has not only affected honest tax paying citizens, but also the civic body, which is struggling to mop revenues and clear long-pending bills of contractors.

The BBMP, which introduced the online property collection facility since April 1, linking it with Canara Bank, has collected Rs 40 crore till Thursday. For the corresponding period last year, it had collected Rs 80 crore. Collection of property tax during April is high as the civic body offers 5% discount on property tax during the month. But because of persisting technical glitches, it has gone slow.

Property tax revenues help the BBMP service loans, pay off contractors’ pending bills and take up administrative expenses. Low or delayed tax collections will impact infrastructure projects too.

Ironically, the BBMP has failed to make arrangements for collection of arrears from property owners for previous years. This means, property owners will not be able to pay the tax until the National Informatics Centre (NIC) makes necessary provisions for collection of tax which is likely to take one more week.

Mr Shaktivelu B., a resident of Banjara Layout in Kalkere, was ready to pay tax for both last year and this year. As he had altered the property, he wanted to pay the revised tax. But BBMP authorities at Kalkere told him to come back after a week.

Although tax paid challans could be generated for a number of people, a good number of them had to return as they had not paid previous year’s tax. For some, the challans could not be printed.

Last year, the BBMP set a target of Rs 2,600 crore for property tax collection, but could achieve Rs 1,980 crore. Property tax is the biggest revenue, while the rest comes as state government grant and loans.

( Source : Deccan Chronicle. )
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