Karnataka Assembly passes bill slashing penalty on property tax in Bengaluru by 50%
Bengaluru, Feb 21 (PTI) The Karnataka Assembly has passed a bill to slash the penalty on property tax in Bengaluru city limits by 50 per cent.
The bill - Bruhat Bengaluru Mahanagara Palike (BBMP) Amendment Bill 2024 - was tabled in the Assembly by Deputy Chief Minister D K Shivakumar, who holds the Bengaluru Development portfolio and was passed on Tuesday.
"With the passing of this Amendment Bill, the penalty amount is halved, saving Bengalureans a whopping Rs 2,700 crore. The BBMP will be able to collect penalties worth Rs 1,000 crore," a statement issued by Shivakumar's office said.
This important amendment will benefit around 13 to 15 lakh people in Bengaluru city including 5.51 lakh taxpayers, five to seven lakh people outside the property tax bracket and three lakh partial property taxpayers, it added.
Former Chief Minister Basavaraj Bommai said the BJP would oppose this bill as it would lead to large-scale corruption.
The Amendment Bill has a provision to give a special rebate to the poor. Government residential buildings and buildings in slums are exempt from property tax penalties. Buildings up to 1,000 square feet which are for own use are exempt from property tax penalties.
Under the Amendment Bill, residential and mixed-use property owners will have to pay property tax penalties only for a maximum period of five years irrespective of the default duration. Interest has been waived 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.
He charged that the property owners in Bengaluru had to pay heavy penalties as the previous BJP government had passed an amendment bill which doubled the penalties resulting in a huge burden on the property tax payers.
The new amendment passed by the Congress government has reduced the penalty burden on the property owners significantly, he added. PTI
