Bengaluru residents will pay 2% land transport tax as well as their annual property tax from April 21

The Bruhat Bengaluru Mahanagara Palike (BBMP) has decided to levy a 2% property tax on the property tax from April 1, 2021.

The proposal, which was approved by the previous BBMP board in 2018, has been put on hold for fear of public backlash. However, struck down by the Comptroller and Auditor General (CAG) for failing to impose the tax, the BBMP board, towards the end of its term, asked the state government for permission to use the tax internally to maintenance of roads, drains and lampposts. .

When the BBMP board first passed a resolution on the matter, the state government did not follow through, fearing a public backlash. But now BBMP administrator Gaurav Gupta and the state government’s urban development department have approved the council’s decision.

CAG

The BBMP collects around Rs 2,500 crore to Rs 3,000 crore as property tax on over 18 lakh properties per year. However, unlike other charges that the civic body collects, the BBMP cannot internally use the urban land transport charge but must transfer it to the Department of Urban Land Transport (DULT) once every three months for the purpose. ‘maintenance of pedestrian paths, cycle paths and other projects.

Currently, the BBMP collects library, begging, health and solid waste management fees, which account for around 24% of the property tax.

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Cynthia D. Farfan