All urban local authorities in Karnataka including the Bruhat Bengaluru Mahanagara Palike (BBMP) have extended the benefit of 5% rebate on property tax till May 31. Usually, the deadline to avail the rebate is by April 30 and the same has been relaxed on account of the COVID-19 induced nationwide lockdown.

The same was made official through a circular sent to deputy commissioners of all districts and heads of urban civic bodies by the Directorate of Municipal Administration under the state’s Urban Development Department.

The circular argued that if the extension is not made, people might start crowding and not maintain social distancing. Given the spread of the disease is preventable with no crowding, the circular spoke in favour of this extension.

In accordance with that circular, BBMP Commissioner Anil Kumar also issued a similar circular starting the same. Prior to the decision by the Directorate of Municipal Administration, many Bengaluru corporators have also spoken in favour of this extension. 

The Hindu reported that so far the BBMP has collected only Rs 304.65 crore till April 28 when the tax collection target was Rs 3,500 crore from over 20 lakh property owners. Out of these 304 crores, Rs 54.68 crore was made through the online mode while Rs 249.96 crore was paid through bank challans.

Inefficient property tax collection has been an issue with the BBMP over the years. Last year, the civic body had only collected Rs 2,729.77 crore out of an intended target of Rs 3,500 crore.

For years, the BBMP has also spoken in favour of greater efficiency with regards to the issue. But none of the work has been actually implemented or proved effective. 

The best that the BBMP has done in recent years was in the financial year 2016-17 when it collected 86% of the target fixed at the beginning of the year.