Bengaluru development minister Krishna Byre Gowda
Bengaluru: Bengaluru development minister Krishna Byre Gowda says the city’s biggest property tax challenge is not a lack of revenue potential but low compliance, with only around 18 lakh properties currently paying taxes despite estimates suggesting there are between 47 lakh and 62 lakh properties. Bescom records show nearly 62 lakh electricity connections across the city While surveys estimate the number of properties at over 47 lakh. Citing a sample study of 23,000 properties, Gowda said: “Our estimate is that these 23,000 properties may be underpaying around Rs 700 crore in taxes. Only about 23 lakh properties have obtained khata records, highlighting the challenge of tracking a large number of properties that remain outside formal civic records despite availing services such as water and electricity connections, according to the minister.
Because a large number of property owners remain outside the tax net or are under-reporting their liabilities while continuing to avail civic services, in a recent interaction with TOI, Gowda said the city’s corporations are facing financial stress.
Different datasets, including socio-economic surveys and electricity connection records, suggest that Bengaluru has far more properties than those reflected in tax records, according to the minister. He said compliant taxpayers often end up carrying a disproportionate burden while neighbouring properties enjoy the same civic amenities without contributing adequately. It is unfair when one person pays taxes while another who enjoys the same services pays nothing,” he said. We need to map properties, identify who is paying, who is underpaying and who is not paying at all,” he said.
The minister also flagged under-reporting among existing taxpayers. Gowda argued that widening tax base is crucial not only for improving civic finances but also for ensuring fairness among residents. “A law-abiding citizen does not need recognition from govt. What they need is for everyone else to comply as well. Officials are also examining incentives and disincentives to improve compliance. “The first task is identification.