BBMP's 2013-14 budget expects a third or more of its receipts from cess on buildings, but collection problems may stymie the effort. It might have failed to meet the tax generation target set for the previous year, but is still pinning hopes on this mode to fill its coffers.
The BBMP budget to develop the infrastructure of the city in the remaining eight months of the financial year banks heavily on raising property tax, a ploy that came a cropper in the previous budget.
This year, the Palike aims to get Rs3,200 crore as property tax, more than a third of its anticipated revenue this year. But given the experience of the previous financial year, that may be pitching it too high.
The BBMP’s budget for 2012-13 was expected to raise Rs2,000 crore through property tax. It could collect less than 70% of the target despite initiatives like embarrassing tax defaulters by beating drums on their property and surprise inspections.
Presenting the budget, mayor D Venkatesh Murthy enumerated the measures that will be taken to get property tax. He said civil engineering students of Bangalore University would be asked to take up the task of verification of commercial buildings, malls and big buildings to ensure they do not evade the tax. He said 400 centres—banks and BangaloreOne branches—would be equipped to accept property tax. Also, he said tax returns filed under self-assessment scheme would be scrutinised to detect wrong declaration.
The city corporation aims to collect Rs25 crore by bringing about four lakh traders under the tax net. Its similar endeavour past year failed miserably. It had set a target of raising Rs90 crore by taxing the traders, but could collect only Rs13.55 crore.
Stating that the BBMP was expecting to raise Rs107.5 crore through advertising, the mayor said the Palike would resort to online radio collaring/printing bar codes on hoardings/banners/flex boards.
While the past year’s BBMP budget had earmarked Rs158 crore for development of lakes, the amount set aside for the purpose this year is Rs57.3 crore. The budget does not mention any plan for rainwater harvesting. The previous budget had mentioned remodeling drains as rainwater harvesting model drains.
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