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.