Bengaluru: BBMP and BMRCL clash over payment of remaining tax

To increase their revenue, the Bruhat Bengaluru Mahanagara Palike (BBMP) is making preparations for collecting the pending property tax. They have a target of Rs 4500 crore to collected from other government institutions by March end. 

A notice has been served to theBangalore Metro Rail Corporation Limited (BMRCL). BMRCL has remaining dues amounting to Rs 64 crore.  BMRCL has however cited the Railway Act to negotiate with this amount. This has resulted in a conflict that remains to be solved by the government. 

The amount of Rs 64 has been pending from the year 2011. This amount includes the amount pending due construction charges and usage of tools. 

As per the Railways Act 1989, local organisations are not bound to pay tax. However an agreement to pay taxes for 43 of the metro stations was made with the BBMP in 2020. This amounts to Rs 20 crore. BBMP is however taking into account the remaining dues from 2011 to 2019. As per the agreement, the yearly tax is capped at Rs 2.5 crore. BMRCL has written a letter to the state government requesting for their intervention in this matter.