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Bengaluru: Property tax rebate may drop to 3% from 2020-21

Bengaluru: Property tax rebate may drop to 3% from 2020-21

The Bruhat Bengaluru MahanagaraPalike (BBMP) is contemplating reducing property tax rebate from the existing 5% to 3% from 2020-21.

Currently, the rebate is available for those who pay tax within the first month of the financial year. This financial year, the tax rebate deadline expired on April 30.

Sources said discussions are also being held on cancelling the rebate facility in the coming years, so that the civic agency can get Rs 200 crore additional revenue through property tax collection.

Former assistant revenue officer Eranna told STOI the Karnataka Municipal Corporation Act doesn’t provide any provision of tax rebate to any property owner. “The rebate provision was introduced in 2008-09 when the self-assessment scheme was in the initial years. The aim was to encourage people to pay the entire year’s tax in the first month of the financial year,” he added.

An official with BBMP’s revenue wing said the rebate provision was introduced through a notification. “It was only for three years and the BBMP should have renewed it with the government’s permission. But that didn’t happen and hence, the rebate provision itself is illegal,” he added.

An official with the revenue wing of BBMP said they have held a formal discussion on reducing the tax rebate with Chief Secretary TM Vijay Bhaskar and he has also approved the proposal to either decrease it or scrap the rebate.

“It will be left to the BBMP to decide on the issue. Instead of withdrawing the rebate provision at one go, we are planning to make a proposal to cut it down to 3% initially. We may also consider increasing the monthly interest, presently 2% per month, for delayed payments of property tax,” he added.

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