Tax from telecom towers: BBMP yet to get Rs 120 crore

NT Correspondent

Bengaluru

Despite multiple audit reports projecting missed opportunities to collect property tax and the unprecedented rise in mobile towers in the city, the Bruhat Bengaluru Mahanagara Palike (BBMP) still relies on a laid-back approach when it comes to collecting much needed revenue. The cash strapped Palike is reportedly struggling to collect taxes from mobile towers, which according to sources, could be around 10,000 in number. The BBMP had set a target of ?5,200 crores for total tax collection for this financial year. However, with the tower operators failing to pay taxes even after repeated notices, achieving that target remains a dream. Under the Karnataka Municipal Corporation (KMC) Act, BBMP has the authority to collect taxes from properties hosting mobile towers.

In 2015, the Karnataka government amended the definition of "buildings" to include mobile towers, enabling BBMP to levy taxes. However, around Rs 120 crore in taxes are yet to be collected. Despite offering a one-time settlement scheme to clear dues, telecom companies have failed to pay, and the deadline is fast approaching. BBMP may soon be forced to take more aggressive action to recover the arrears, as companies continue to ignore their obligations, said sources.