24 Govt Depts Among BBMP's Tax Defaulters

Tuesday, 28 January 2014 09:28 administrator
Print

The Indian Express              28.01.2014

24 Govt Depts Among BBMP's Tax Defaulters


While the BBMP is struggling to collect dues from property tax defaulters, more than 24 properties belonging to ten State and Union government departments have not paid their dues for many years.

As per the Karnataka Municipal Corporation (KMC) Act, State and Union government departments have to pay service charge on their properties to  City Corporations — in Bangalore, it is the BBMP.

The government departments have to pay only 25 per cent of the property tax which is collected as service charge.  For instance, if the property tax towards a particular government property is calculated as `1 lakh, the department has to  pay just `25,000 as service charge to the BBMP.

Defaulters

Some defaulters are Karnataka State Road Transport Corporation (KSRTC), Bangalore Metropolitan Transport Corporation (BMTC), Karnataka Housing Board (KHB), Karnataka State Tourism Development Corporation (KSTDC), Karnataka State Police (KSP),  Transport Department, Karnataka State Pollution Control Board (KSPCB), Bharat Sanchar Nigam Limited (BSNL), Food Corporation of India (FCI) and Bharat Heavy Electrical Limited (BHEL).

Of these 24 government properties, 12 belong to the KSRTC and the BMTC. When contacted, Transport Minister R Ramalinga Reddy, who is also Bangalore Urban District In-charge Minister, told Express that one can pay tax from April to March (financial year).

“This year, as there is time till March, they will pay. I will also direct them to pay their dues, if any,” he added.

No Beating Drums This Time

A BBMP official said it is not easy to collect the service tax.

“We can neither go beat drums in front of their building nor confiscate their property as an attachment. Ultimately, it will be an embarrassment to the State government. Working under the government set-up, we cannot take this step,” he said.

Chairman of the BBMP’s Standing Committee for Taxation and Finance Dr MS Shivaprasad said the matter has  been brought to the notice of the Commissioner.  “They will take action,” he said.

Commissioner M Lakshminarayana blamed lower-level officials working in these departments for the delay in payments.

“It is because of their negligence that dues are not paid. It is not that they have to pay from their pocket, the department has to pay. I shall bring it to the notice of  senior officers,” he said.

“Even then, if they do not pay their dues, we might think of disconnecting water supply or other facilities. But I am sure, they will pay,” he added.