Following public demand, BBMP extends deadline for 5% property tax rebate to May 31

Indian Express

29-04-2025

The Bruhat Bengaluru Mahanagara Palike (BBMP) has extended the 5 per cent property tax rebate period for the financial year 2025-26 until May 31. Initially, taxpayers who paid their property tax in full by April 30 were eligible for the concession.
Following a proposal discussed during a meeting, the government approved the extension allowing all BBMP taxpayers to avail of the 5 per cent discount if they pay their 2025-26 property tax in full by the revised deadline of May 31. This was formally notified on Tuesday.
Property owners across Bengaluru urged the BBMP to extend the tax rebate deadline beyond April 30 citing technical glitches on the BBMP property tax portal, which was reportedly inactive until April 5. This left taxpayers with limited time to process payments. Additionally, confusion over the newly introduced solid waste management user fee contributed to widespread frustration, prompting calls for a one-month extension of the rebate period.
Property owners took to social media to voice their grievances. One of them, Srivathsa Kalale Nadaddur, wrote on X, '@BBMPCOMM Can you please resolve this complaint where we are unable to pay property tax due to a technical bug in the property tax payment system ?'
K Sanjay Iyer, another X user, said, 'I am not able to pay the property tax online like I used to do every year as suddenly this year I am getting a message saying 'property details not available, contact ARO'. I have even sent emails to [e-mail] but have not received any response. Please advice'
Dinesh Rao, yet another X user, complained, 'Your website does not work. After entering mobile number, OTP and captcha, it does not go to another page at all. Same thing with property tax as well. Unable to pay property tax even after multiple tries. Is someone looking into this matter?'
The BBMP announced the 5 per cent property tax rebate for the 2025-26 fiscal year for taxpayers who paid their taxes in full by April 30, aiming to encourage early compliance and boost revenue collection. The civic body set an ambitious target of collecting Rs 6,000 crore in property tax, following a successful 2024-25 fiscal year, where it collected Rs 4,930 crore, a 25 per cent increase from the previous year's Rs 3,918 crore. The rebate was part of the BBMP's strategy to front-load revenues and improve compliance.
Solid waste management user fee
However, the introduction of the solid waste management user fee from April 1, merged with property tax for 2025-26, led to significant public discontent. The fee, aimed at funding waste management services, increased the tax burden by 20–35 per cent for many property owners. For instance, a property previously charged a solid waste management cess of Rs 720 in 2024-25 faced a revised charge of Rs 3,344–a nearly fivefold increase. Residents criticised the lack of transparency and public consultation, with some questioning the need for additional charges when the BBMP already collects substantial property taxes. The solid waste management fee ranges from Rs 120 per year for properties up to 600 sq ft to Rs 4,800 per year for properties over 4,000 sq ft.
Additionally, apartment complexes managing their waste through composting or private vendors reported being unfairly charged individual solid waste management fees. Although exemptions were promised for bulk waste generators, these are subject to physical inspections by BBMP officials, raising concerns about potential harassment or corruption.
As part of its property tax system updates, the BBMP introduced a declaration option for bulk waste generators (residential complexes with 100+ units, properties over 5,000 sq ft, or those generating 100 kg+ waste daily) to promote in-situ waste management. Non-compliant bulk generators must pay a processing fee of Rs 12 per kg for waste handed over to BBMP. This initiative aligns with the Swachh Bharat Mission guidelines, which mandate 90 per cent efficiency in user fee collection to maintain national cleanliness rankings and secure central funding.
Meanwhile, the BBMP also revised property tax rates for parking spaces under the unit area value system, effective from April 1. Residential property owners now pay Rs 600 annually for a 150 sq ft parking slot, while commercial properties are charged Rs 1,125 per year. The revision standardised rates previously based on zonal classifications, aiming to reduce tax liability and encourage compliance. The BBMP clarified that this was not a new tax but a rationalisation of an existing levy.