BDA increases property taxes despite Rs 40 cr in pending dues

Time of India

03-05-2025

Bengaluru Development Authority
We're not against paying taxes — we're against paying for promises that were never kept. No roads, no water, no power — just rising bills
– TS Mahesh, President, Banashankari 6th Stage Residents Welfare Association
The(BDA), which has failed to provide adequate basic infrastructure, has increased property tax on its properties by 20% to 45%. This comes after the state government raised the prices of essential services like public transport fares, electricity, water, milk, and property registration fees. Following this, BDA's decision to revise the property tax rates has triggered protests from property owners under its jurisdiction.With over 1.22 lakh people affected, including those in developed areas like Arkavati, Banashankari, and Nadaprabhu Kempegowda, along with properties in BDA-approved layouts, the tax hike has sparked strong opposition from various residents' associations. These associations have already voiced their dissent against the BDA's decision. The BDA collects around `55 to `60 crore annually from property taxes but has an outstanding dues of about `40 crore, accumulated over several years. The state government, in collaboration with the Centre for E-Governance, has updated the property tax details for all properties, and the revised rates were published on the BDA's website on April 28.Starting from April 1, 2025, property taxes will be determined based on the revised guideline value of the properties, as confirmed by BDA sources.Property taxes are calculated based on the annual value of the asset, location, area, and any improvements made. However, many areas developed by the BDA lack adequate basic infrastructure, and there has been little progress in providing improvements. This has led to frustration, with residents questioning the fairness of the tax hikes.Many property owners have expressed their dissatisfaction with the increased tax and the lack of corresponding improvements in infrastructure. 'The roads are still under construction, and there is no proper electricity or water connection. Despite this, the property tax has been increased. The authorities are interested in collecting taxes but are not providing the necessary facilities,' said S C Narayanaswamy, a resident of Arkavati Layout.T S Mahesh, President of the Banashankari 6th Stage Residents Welfare Association, also criticized the new charges, pointing out that empty plots are being charged a maintenance fee of `1.5 per square foot, even when there is no construction. He demanded that this fee be removed immediately.Residents are increasingly frustrated with the BDA's negligence in providing basic services, leading to protests. Despite paying taxes for eight years in the Nadaprabhu Kempegowda Layout, many infrastructure projects are still incomplete. 'After paying property taxes for so long, no significant infrastructure has been provided. The BDA has increased taxes by 9% to 50% in our area, but the basic services remain underdeveloped. We demand the completion of basic infrastructure before further tax hikes,' said Sunil Kiran, a resident of Nadaprabhu Kempegowda Layout.Many are now questioning the value of owning property in BDA-developed areas, preferring to live in rented accommodations instead. The ongoing issues reflect a broader dissatisfaction with BDA's handling of infrastructure and property taxation.