BBMP proposes to let go of penalty and interest on tax arrears

But it insists property owners should pay arrears

The city’s civic body has now proposed to the State government to let go of the penalty and the interest on property tax arrears notices it has issued for wrong classification of tax zones since the last five years. But, it insists that property owners should pay the property tax arrears. The Bruhat Bengaluru Mahanagara Palike (BBMP) over the last few months issued over 78,500 tax notices to property owners for not updating their tax zones in 2016-17, when a new classification was notified. Notices asked property owners to pay tax arrears, interest, and penalty for the five years since. BBMP expected to mop up revenues of ₹360 crore: ₹120 crore in tax arrears and ₹240 crore in penalty and interest. Several had objected to this, arguing that the civic body is also at fault for not reflecting changes in the property tax portal, not publicising the changes enough in 2016, and waking up now after five years, which many civic officials concede too. As an acknowledgement of its faults, BBMP now proposes to let go of the penalty and the interest, but expects property owners to pay tax arrears of ₹120 crore.