Task to collect property tax may go to third party.
The BBMP is mulling on the idea of outsourcing the task of collecting property tax.
If all goes well, the standing committee on finance and taxation will submit the proposal to the BBMP council shortly to ratify the proposal. According to a document available with dna, the standing committee discussed the proposal in its meeting last month. The agenda copy of the meeting said that about one-fifth of the properties in the city were yet to be issued property identification numbers. It said once the task of issuing the number is over, the committee would take a call on whether or not to outsource the task of collecting property tax.
The Palike succeeded in collecting Rs 1,368 crore property tax as against the target of Rs 1,500 crore for the year 2012-13. “We are confident of achieving the target of Rs 1,500 crore this year,’’ said MS Shivaprasad, chairman, standing committee on finance and taxation, BBMP.
On the proposal to outsource the property tax collection, Shivaprasad said: “As of now, we have instructed all the employees of the revenue department to focus on the collection of property tax. If they fail to collect the property tax, we may seriously consider outsourcing the property tax collection.”
MK Gunasekar, former leader of opposition in the BBMP council, opined that the idea of outsourcing the property tax collection was impractical. “Who will take up the responsibility if the outsourcing agency fails to deposit the property tax in the bank! It will complicate the issue rather than increasing the property tax collection in the city. Outsourcing property tax will showcase the employees of revenue department in a poor light,” he said.
R Prakash, JD(S) leader, BBMP council, said his party would oppose the proposal if and when it is presented in the BBMP council for approval. “Outsourcing property tax collection will make people more corrupt,” he said.
Opposing the proposal of outsourcing property tax collection, Subramanyam R, president, Bruhat Bangalore Mahanagara Palike Officers and Employees’ Association, said he had already discussed the issue with BBMP commissioner M Lakshminarayana. “Instead of blaming revenue department employees for shortage of collection in property tax, the authorities concerned must take measures to fill up vacancies in the revenue department,” he said.
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