BANGALORE MAHANAGARA PALIKE - ‘NIRANTARA’Proposal for consideration of the Steering Committee
– TL - Mr. Ramakanth
ServiceCollection of property tax based upon the [new] capital value system on a timely andaccurate basis from all property owners in Bangalore.
Service LevelComponentsUnderstanding of property owners of taxation laws and regulationsIdentification and valuation of all property on a timely and comprehensive basisProcess for self assessment of taxesProcess for issuance of tax notification and demand noticesEasy to pay and collect taxes within time limitsObjections handling and resolution processCompliance monitoring process Service TargetIndicatorsAwareness of property owners of new taxation regulationsPercent of all properties untaxed [estimated at 5%]Percent of properties taxed using self assessment [currently estimated as 50% of all properties]Percent of assessments subject to penalty because of taxpayer supplied inaccurate informationResponse time to resolve property tax assessmentsCollection rate of taxes on or before the due dateAverage age of outstanding property taxesProperty owners satisfaction of the taxation process efficiency and responsivenessKey service problems5% of properties are untaxedCurrent taxation methods too complicated and do not pick up increasing value of propertiesTaxpayers do not furnish accurate data when using self assessment methodSanctions not applied to non compliance with taxation rulesSanctions not heavy enough to act as sufficient deterrent
1 Implement CIS over a two year period to 450,000 properties2 Develop and implement education program for citizens on CIS, incentives and sanctions3 Develop revised procedures to underpin implementation of CIS4 Train approximately 200 key personnel in the new law and procedures for CIS5 Implement legislation for levying 2% per month penalty for late payments of property tax5 Implement a 5% reduction of tax incentive for payment within 30 days of year commencement6 Implement sanctions and publicise action for deliberate provision of inaccurate property data
Proposed lateraction 2003-5
1 Update computer records to ensure correct property data held on computer 2 Develop and implement an sampling program to test accuracy of taxpayer supplied data3 Set up performance targets and monitoring of service indicatorsBudget andresourceimplicationsRupees for awareness program on tax matters for all property owners R xxxxxxxRupees to develop and implement training program for BMP taxation staff R xxxxxxRupees to install and upgrade computer systems for recording property taxesRupees forgone by offering incentive to pay early R xxxxxxRupees gained by applying heavier sanctions for non compliance R xxxxxxxxxExpected collection increase in taxes R xxxx croresExpectedPerformanceIndicators70% of properties converted to CIS by April 2004 and 100% by April 2005.Other indicators to be developed and implemented by June 2003.PossiblecommunityreactionProperty owners can expect to react unfavourably to change as they will assume it will lead toincreased taxes [unless publicity clarifies the fairness and simplicity of new system]. They willalso react to sanctions applied. Need to develop campaign to enlist public support for fair taxesto provide funds for needed services.SteeringCommitteedecision requiredEndorse the proposed immediate and later action and recommend the funding and resourcing for the 2003 budget.Submitted for March 7
2003 BMP Nirantara Steering Committee