Bengaluru: The 5th State Finance Commission has proposed split payment (EMIs) of property tax and introduction of amnesty and incentives to encourage owners to clear tax dues.The commission’s report, tabled in the legislative assembly Wednesday, dedicates a chapter to property tax reforms aimed at improving collection efficiency in the city.The recommendations come at a time when the govt has started drone surveys of properties in Greater Bengaluru Authority (GBA) to identify defaulters. Officials estimate dues across the five corporations of GBA run into lakhs of rupees.Bengaluru has 20.5 lakh properties, of which 5 lakh are not assessed. The commission has urged authorities to complete door-to-door surveys and bring them under the tax net. This could generate up to Rs 700 crore in annual revenue for the five corporations, the report said.Explaining the rationale behind EMIs, the commission noted: “A lumpsum payment each year might be difficult to manage. Splitting it into monthly payments might make it easier to pay which also softens the impact.”To simplify digital payments, the commission has suggested that GBA tie up with payment apps to reduce the number of steps required for online transactions.At present, GBA does not provide an option to convert property tax payments into EMIs. Taxpayers can avail of EMIs offered by banks while making payments through credit cards or net banking.Average property tax for residential properties ranges between Re 1 and Rs 2.5 per sqft, along with a 24% cess for self-occupied homes. Commercial properties are taxed between Rs 5 and Rs 12 per sqft depending on the zonal guidance value classified from A to F.Referring to similar initiatives elsewhere, the commission said: “Rebates for timely payments, similar to the 5% followed by BBMP in the recent past, can also incentivise people to pay on time.”Citing examples from Delhi and Pune, where one-time amnesty schemes allowed property owners to voluntarily disclose assets and bring them under the tax net, the commission said such a model could be adopted in Bengaluru too.The report recommends that GBA use drone-like imagery technology to detect changes in building structures. It has recommended multiple verification checkpoints using the e-khata system. It suggested cross-verifying property tax records with data from Bescom, particularly for new electricity connections, as well as with GBA records related to building licences.
