Bengaluru: Bruhat Bengaluru Mahanagara Palike (BBMP) achieved 95% of its targeted property tax collection during 2024-25, collecting Rs 4,930 crore against the intended Rs 5,210 crore.
While the shortfall was just Rs 280 crore, there were significant variations in zonal achievements with some exceeding expectations and others lagging behind.
Yelahanka, the top performer, surpassed its target by a notable margin, collecting Rs 465 crore against the target of Rs 445 crore, achieving 104% progress. Mahadevapura followed closely with a marginal surplus, collecting Rs 1,310.5 crore, about Rs 1.5 crore more than the target of Rs 1,309 crore. South zone achieved 95% of its target, garnering Rs 734 crore against the target of Rs 770 crore. However, Bommanahalli fared the poorest, meeting only 84% of the target, accounting for Rs 490 crore against the targeted Rs 585 crore. RR Nagar was another underperformer, meeting just 88% of the target, falling short of the Rs 434 crore target by Rs 52 crore. West and Dasarahalli zones also missed their targets by approximately Rs 47 crore and Rs 12 crore, respectively.
The overall concentration of revenue is primarily in Mahadevapura, East, and South zones, which together account for over 60% of BBMP’s total collection. These zones are seen as the economic powerhouses, reflecting both the higher tax base and better compliance. Yelahanka’s success stands out as a model of efficiency, surpassing its mid-range target, which could indicate better taxpayer services, improved compliance, or fewer exemptions.
BBMP special commissioner (revenue) Munish Moudgil attributed the revenue collection to a combination of strategic measures. “This was made possible by the one-time settlement (OTS) scheme, a very systematic and IT-based follow-up on arrears and current tax dues, issuance of complete standard operating procedures (SoPs) and rules to recover arrears, and house-to-house follow-up for both arrears and current year taxes on the ground. This financial year (2025-26), we will cross Rs 6,000 crore — all this without increasing property tax rates, which continue to be the same as they were in 2016.”
According to civic officials, the performance gaps, particularly in Bommanahalli and RR Nagar, indicate areas that require focused intervention. Possible reasons for the underperformance could include issues related to enforcement, valuation discrepancies, or inefficiencies in the tax collection process. A review of Bommanahalli’s target is necessary to understand if it was set too ambitiously or if there are deeper underlying issues, such as legal disputes or systemic challenges like undervaluation or poor enforcement.
For BBMP to improve its performance, replicating Yelahanka’s model could be a key strategic move. Understanding the factors behind Yelahanka’s performance, such as digital outreach, stricter enforcement, or improved taxpayer services, could help other zones close the performance gap. Additionally, a reassessment of targets might be necessary, as some zones might be operating at their full potential, while others could be facing unrealistic targets. Introducing zonal incentives for high-performing areas or penalties for inefficiencies might encourage better performance across the board, the officials disclosed.