The Karnataka Assembly on Tuesday approved a bill seeking to cut the penalty on property tax levied in Bengaluru city limits. The bill tabled in the Assembly by Deputy CM D K Shivakumar put forth a reduction of 50 per cent in the penalty on property tax.
The bill, titled Bruhat Bengaluru Mahanagara Palike (BBMP) Amendment Bill 2024, was passed in the Assembly and will help the residents living inside the Bengaluru city limits save up on penalty worth Rs 2,700 crore, reported PTI.
With the Amendment Bill being passed, the BBMP will now be able to collect penalties worth Rs 1,000 crore, an official statement released by the Deputy CM’s office revealed. The statement added that this amendment will help provide benefits to about 13 to 15 lakh residents in Bengaluru city, including 5.51 lakh taxpayers, 5 to 7 lakh people outside the property tax bracket, and three lakh partial property taxpayers.
Reacting to the new Bill, former Chief Minister Basavaraj Bommai said that the Bharatiya Janata Party would remain against the bill as it believes that the decision would lead to a large-scale corruption.
The bill is expected to help provide relief to the economically weaker sections of the society. Notably, government residential buildings, along with slum buildings are not liable for property tax liabilities.
Further, property tax penalties are applicable on residential and mixed-use property owners, but only for a maximum period of five years, irrespective of the default duration. The interest on the dues beyond five years has also been waived.
Shivakumar addressed the Assembly and said, “This is a taxpayer-friendly amendment. We have brought this Bill to help the common people though it is a burden on the government. The new amendment passed by the Congress government has reduced the penalty burden on the property owners significantly.”
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