Greater Bengaluru Authority Targets Tax Defaulters Amid Shortfall

The Greater Bengaluru Authority (GBA) is intensifying efforts to recover property taxes as it faces a significant shortfall of Rs 3,100 crore. In response to lagging collections, GBA has instructed its five city corporations to identify major tax defaulters and expedite recovery of outstanding dues. During a virtual review meeting held on October 23, 2023, Chief Commissioner M Maheshwar Rao emphasized the need for immediate action to address the shortfall.

Officials were directed to map properties with the highest outstanding dues and implement recovery measures without delay. Rao also urged city corporations to locate properties and individuals who are currently outside the tax net, encouraging their inclusion in the property tax system. This initiative aims to increase compliance and revenue generation for the city.

According to Munish Moudgil, the Special Commissioner (Revenue), the five corporations have set an ambitious target of Rs 6,700 crore in property tax collections for the fiscal year. However, the current collection stands at only Rs 3,533 crore, which amounts to just over half of the target. The data presented during the meeting revealed that 24,000 property tax revision cases are pending, totaling nearly Rs 170 crore. Additionally, around 22,000 defaulters owe a collective Rs 598 crore.

To facilitate recovery, each corporation has been tasked with preparing a list of 100 revision cases and 100 major defaulters for every division. Moudgil stated that revenue inspectors and collectors will receive specific targets to meet, and he warned that some commercial properties may be sealed if necessary to ensure compliance.

City corporation commissioners, including Rajendra Cholan, Pommala Sunil Kumar, Ramesh DS, Ramesh KN, and Dr Rajendra KV, participated in the meeting alongside additional and joint commissioners from the Revenue department. The proactive measures outlined by the GBA reflect an urgent response to the fiscal challenges facing Bengaluru, aiming to bolster the city’s financial health through improved tax collection strategies.