The Karnataka Legislative Assembly on Monday passed the Bruhat Bengaluru Mahanagara Palike (BBMP) Second Amendment Bill, aimed at tightening measures against property tax defaulters in the city.

Deputy Chief Minister D.K. Shivakumar, who also holds the Bengaluru Development portfolio, tabled the Bill during the ongoing winter session of the state assembly.

Highlighting the progress in property tax collection, Shivakumar noted the civic body’s success in collecting Rs 4,284 core till November.

“A deadline of November 30 was set for property tax defaulters within the BBMP jurisdiction to clear their dues under the One-Time Settlement (OTS) scheme. This initiative helped raise an additional Rs 700 crore in property tax. A total of Rs 1,200 crore has been collected from 3 lakh properties so far. However, dues from 2.26 lakh properties remain unpaid,” he said.

He further added, “By November 30, a total of Rs 4,284 crore in property tax has been collected. A related ordinance has already been issued, and the 2024 BBMP Second Amendment Bill now requires approval”.

Former minister Ashwath Narayan welcomed the amendment, acknowledging its potential to enhance revenue collection and address tax evasion. However, he cautioned against future hikes in property tax, emphasising Bengaluru’s substantial contribution to the state’s overall tax revenue.

“The Deputy Chief Minister has introduced a commendable amendment, improving property tax collections and ensuring compliance from defaulters. Bringing tax evaders and those undervaluing properties into the tax net is a positive step. However, property tax rates should not be increased further,” he said.

“Do not overburden property taxpayers or rely solely on property tax revenue to run the BBMP. Bengaluru contributes about 65% of the state’s tax revenue, yet the city does not receive adequate support from other departments. The state government must increase grants to Bengaluru. I appreciate your efforts to bring everyone under the tax net,” Narayan remarked.

Following the discussion, Speaker UT Khader put the Bill to a voice vote, and it was unanimously approved by the Assembly.