The Hindu 10.07.2013
Old is gold for BBMP on revenue collection
Demand-Collection-Balance mechanism has been mooted to improve property tax collections
Property tax is the major source of revenue for the
cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP). While the
revenue from property tax has been increasing over the past few years,
the civic body is hoping to strengthen it further by re-introducing the
Demand-Collection-Balance (DCB) system.
This decision
was taken by BBMP Commissioner M. Lakshminarayan soon after the
misappropriation of tax collected by three tax inspectors came to light.
A senior BBMP official told
The Hindu
that the DCB system was discontinued in 2002. “It is not clear why it
was discontinued. However, it will soon be reintroduced and made
mandatory at the tax inspector level.”
The city’s 16 lakh properties have been mapped by Geographical Information System (GIS).
However,
many are not yet covered under the tax net. By reintroducing the DCB
system, each tax inspector will have a record of number of properties
under his/her jurisdiction (approximately 2,500) and those that have
paid tax.
“With the DCB system in place, the tax
inspector will know exactly what is due from the properties and will be
able to raise a demand by issuing notices to defaulters. The system will
make accounting easy and transparent,” the official said.
At
present, the BBMP has been estimating the tax due. If all the
properties that have been mapped by GIS are brought onto the DCB system,
the civic body will be able to scientifically determine the tax that
can be collected from these properties, besides covering more
(properties) under the tax net.
The BBMP also hopes
to assess the performance of the tax inspectors by monitoring the tax
collections in their jurisdictions, the official said.
Meanwhile,
the BBMP is working towards simplifying the payment mechanism for
property tax and trade licences by making them more citizen-friendly.
Payment of tax may soon be possible through some nationalised banks, the official added.
