The Bruhat Bengaluru Mahanagara Palike (BBMP) is issuing notices to business establishments running from shacks and petty shops for violation of property tax norms. The shops, despite running commercial establishments, were paying property tax categorised as residential properties.
The BBMP was able to track down these violators through Bangalore Electricity Supply Company Limited (Bescom) bills. Although the property owners were paying residential property tax, they have been availing of commercial power supply. According to BBMP, through this mode about 15,000 violators were served notices over the last three months.
The problem with such property owners is that they have to pay the tax with retrospective effect, which is a huge sum. The violators are directed to pay the commercial price of the tax from the day they availed of the power connection, besides paying penalties and interests on the annual tax amount.
A property owner from the city where a small hotel is being run has to now shell out more than ₹3.5 lakh for six years. The shop has now been shut by the civic body. Ramesh Rai (name changed), talking to The Hindu, said while he is at fault for not paying commercial property tax, the government should come up with an amicable solution as many do not have enough cash to pay. The BBMP officials are saying there will be no waiver on the total amount. Ramesh was earlier paying ₹600 residential property tax, and commercial property tax price is pegged at ₹14,000
Another shop owner from K.R. Puram, who runs a bakery, is asked to pay about ₹4 lakhs, and he says it will be difficult for him to pay the amount. He urged the BBMP to come up with a flexible solution to save the shops.
BBMP Special Commissioner (Revenue), Munish Modgil said through Bescom bills the BBMP has managed to identify 12,000 to 15,000 violators and had served them notices.
