Karnataka Assembly Passes Bill To Slash Bengaluru Property Tax Penalty By 50%

DK Shivakumar charged that property owners in Bengaluru had to pay heavy penalties as the previous BJP government had passed an amendment bill that doubled the penalties.

The Karnataka Assembly passed a bill to slash the penalty on property taxes by 50 per cent within Bengaluru city limits on Tuesday. The bill, titled Bruhat Bengaluru Mahanagara Palike (BBMP) Amendment Bill 2024, was tabled in the Legislative Assembly by Deputy Chief Minister D K Shivakumar, who oversees the Bengaluru development portfolio.

According to PTI, a statement issued by Shivakumar's office said, "With the passing of this Amendment Bill, the penalty amount is halved, saving Bengalureans a whopping Rs 2,700 crores. The BBMP will be able to collect penalties worth Rs 1000 crore," 

The important amendment is expected to benefit approximately 13 to 15 lakh individuals in Bengaluru city, including 5.51 lakh taxpayers, five to seven lakh individuals not falling within the property tax bracket, and three lakh partial property taxpayers. Former Chief Minister Basavaraj Bommai stated that the BJP would oppose this bill, citing concerns about potential widespread corruption.

The Amendment Bill includes provisions for providing special rebates to the economically disadvantaged. Government residential buildings and structures in slums are exempt from property tax penalties. Additionally, buildings up to 1,000 square feet intended for personal use are also exempt from property tax penalties.

Under this amendment, residential and mixed-use property owners will only have to pay property tax penalties for a maximum period of five years, regardless of the duration of default. Interest on dues beyond five years has been waived.

"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, as per PTI.

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.