NEWS – One-Time Settlement Scheme Boosts Property Tax Collection

HIGHLIGHTS

Scheme Overview:

• Implementation: The One-Time Settlement (OTS) scheme allows property owners to pay dues without penalties.
• Utilization: 1.07 lakh property owners have used the scheme, paying ₹184.77 crore till July 29.

Impact on Defaulters:

• Decrease in Defaulters: From April 1 to July 29, there has been a notable decline in property tax defaulters.
• Scheme Effectiveness: The decline is attributed to the effectiveness of the OTS scheme.

Current Status:

• Scheme Deadline: The OTS scheme ends on Wednesday, with the window available until 9 p.m. on July 31.

Post-Scheme Measures:

• Penalties and Interest: Starting August 1, defaulters will face a 100% penalty and interest rates of 9% to 15% on arrears.
• Example: A ₹10,000 tax arrear would incur a penalty of ₹20,000 plus interest.

New Policy:

• Amendments: The BBMP Act was amended, introducing a new tax policy from August 1.
• Enforcement: Property owners will receive three notices before actions such as property confiscation or auction.

BBMP’s Position:

• Revenue Collection: BBMP Commissioner Tushar Girinath stresses the importance of meeting the deadline to avoid severe penalties and enhance revenue collection.