BENGALURU: The 5th State Finance Commission has put forth a proposal for property tax payments to be made in installments (EMIs) alongside the introduction of amnesty and incentives to motivate property owners to settle outstanding tax dues.
The commission’s report, presented in the legislative assembly on Wednesday, dedicates a chapter to reforming property tax to enhance collection efficiency within the city.
These recommendations arrive as government officials have initiated drone surveys of properties in the Greater Bengaluru Authority (GBA) to identify tax defaulters. Estimates suggest that dues across GBA’s five corporations reach into the lakhs.
Bengaluru is home to 20.5 lakh properties, with 5 lakh of these not yet assessed. The commission has urged local authorities to conduct door-to-door surveys and include these properties in the tax system, potentially generating up to Rs 700 crore in annual revenue for the five corporations, according to the report.
Explaining the need for EMIs, the commission stated: “A lump sum annual payment can be challenging. Dividing it into monthly installments may ease the burden, making it more manageable for taxpayers.”
To simplify digital payments, the commission has recommended the GBA collaborate with payment applications to streamline the online transaction process.
Currently, the GBA does not offer an EMI option for property tax payments, though taxpayers can access EMIs through banks when using credit cards or net banking.
The property tax rates for residential properties range from Re 1 to Rs 2.5 per square foot, including a 24% cess for self-occupied homes. Commercial properties face tax rates of Rs 5 to Rs 12 per square foot, depending on their zonal classification from A to F.
Referencing successful initiatives in other cities, the commission noted: “Rebates for timely payments, similar to the previous 5% incentive by BBMP, could encourage timely tax payments.”
Citing examples from Delhi and Pune, where one-time amnesty schemes enabled property owners to voluntarily declare their assets and enter the tax system, the commission proposed that Bengaluru adopt a similar model.
The report also advises the GBA to utilize drone imagery technology to monitor changes in building structures, recommending multiple verification checkpoints through the e-khata system. It suggests cross-referencing property tax records with data from Bescom, particularly for new electricity connections, and GBA records concerning building licenses.
