Karnataka Assembly passes bill to boost Bengaluru’s property tax compliance

The Karnataka Legislative Assembly has unanimously passed the BBMP Second Amendment Bill, aimed at curbing property tax evasion and bolstering revenue collection in Bengaluru. The legislation, introduced by Deputy Chief Minister D.K. Shivakumar during the winter session, seeks to empower the Bruhat Bengaluru Mahanagara Palike (BBMP) with stricter enforcement measures against tax defaulters.

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Highlighting the city's tax performance, Shivakumar revealed that BBMP had collected ₹4,284 crore in property taxes by November 30, aided by the One-Time Settlement (OTS) scheme. “The OTS initiative enabled defaulters to clear dues, bringing in an additional ₹700 crore. So far, ₹1,200 crore has been collected from 3 lakh properties, although dues remain from 2.26 lakh properties,” he noted. The Amendment Bill builds on the OTS scheme, ensuring further compliance through legislative support.

Former minister Ashwath Narayan endorsed the Bill but cautioned against overburdening Bengaluru's taxpayers. “The city already contributes 65% of the state’s tax revenue. Any increase in property taxes must be avoided, and the government should allocate more grants to Bengaluru for development,” he urged.

The Bill, approved through a voice vote, now awaits final ratification. Once enacted, it will strengthen BBMP’s capacity to recover dues, reduce tax evasion, and enhance revenue generation, addressing a long-standing issue in the city’s administration. This move is expected to balance fiscal discipline with taxpayer fairness.