The Karnataka legislative assembly on Tuesday, February 20, passed the Bruhat Bengaluru Mahanagara Palike (BBMP) Amendment Bill, 2024 to reduce the penalty on property tax by a massive 50% in the city. The bill was tabled by Karnataka Deputy Chief Minister DK Shivakumar.
According to reports, it is expected that the move will help save Bengaluru citizens around Rs 2,700 crore. A total of 13-15 lakh people, including 5.51 lakh taxpayers, are expected to be benefited due to the amendment. Around 5-7 lakh people outside the property tax bracket and three lakh partial property taxpayers also stand to gain.
The Bill has a provision for a special rebate to the marginalised sections of the society. It exempts government residential buildings, and buildings in slums from the property tax penalties. Buildings under 1,000 square feet used for personal use are also exempted from the penalties. The Bill also waives off interest for dues beyond five years. Irrespective of the default duration, residential and mixed-use properties only have to pay the property tax penalties for a period of five years.
“This is a taxpayer friendly amendment. We have brought this Bill to help the common people even though it is a burden on the government. The BBMP will be able to collect penalties worth Rs 1,000 crore,” said Shivakumar.