LI Network
Published on: February 21, 2024 at 11:06 IST
The move with aim to ease the burden on taxpayers, the Legislature successfully passed the BBMP Amendment Bill 2024 on Tuesday. Spearheaded by Karnataka Deputy Chief Minister DK Shivakumar, who also holds the portfolio of Bengaluru City Development Minister, the bill received overwhelming support during the post-lunch session.
The key highlight of the bill is the substantial reduction in penalties imposed on property tax dues within Bengaluru city limits. Under the amended legislation, the penalty amount has been slashed by 50 percent, translating to a monumental relief of Rs 2,700 crore for Bangaloreans. The Bangalore Municipal Corporation (BBMP) stands to gain penalties worth Rs 1000 crore with the implementation of this crucial amendment.
This taxpayer-friendly initiative is poised to benefit a significant portion of the city’s populace, encompassing approximately 13-15 lakh individuals. Among them, 5.51 lakh taxpayers will directly benefit, along with 5-7 lakh individuals previously outside the property tax bracket and 3 lakh partial property taxpayers. Notably, the bill includes provisions for special rebates targeting economically disadvantaged segments, exempting government residential buildings and slum structures from property tax penalties. Additionally, properties up to 1,000 square feet utilized for personal purposes will also be spared from penalties.
One of the key provisions of the Amendment Bill limits property tax penalties to a maximum duration of 5 years, regardless of the default period. Furthermore, interest on dues beyond this five-year threshold has been entirely waived. Deputy Chief Minister DK Shivakumar underscored the taxpayer-centric nature of the amendment, emphasizing its role in alleviating the financial strain on ordinary citizens.
The move comes as a relief to Bangaloreans burdened by hefty penalties imposed by the previous administration, which had doubled the penalty rates on property tax dues. The latest amendment, championed by the Congress government, marks a substantial reduction in penalty burdens, reflecting a commitment to taxpayer welfare and economic relief for residents of Bengaluru.