BMP tax recovery gets hi-tech knock

BMP tax recovery gets hi-tech knock
BMP is buying tax collection machines which enables its inspectors to conduct tax-related transactions at the doorsteps.

Deccan Herald

Next time a tax inspector knocks on your door demanding tax arrears, don’t try to play the old trick -- of making a false promise to clear the dues soon. For, Bangalore Mahanagara Palike (BMP) tax inspectors will soon be armed with hi-tech gadgets, through which tax payment transactions can be done on-the-spot.

BMP is procuring tax collection machines which enables its tax inspectors to conduct tax-related transactions at the doorsteps of defaulters. The machines will be used for recovering dues towards property tax and advertisement tax.

Each of these devices is programmed to record details of nearly 4,000 properties at a time, and it will be directly connected to the main server at respective zonal offices. The hand-held machine will weigh 500 to 750 grams, BMP sources told Deccan Herald.

The devices will also be able to issue tax receipts on payment of tax on-the-spot. It will have a Dot Matrix printer – which can print the receipt sized 2 inches wide and 6 inches long -- in both Kannada and English. Tax can be paid through cash, cheque or DD under this system.

Losses

BMP has been incurring huge losses every year because of defaulters. In fact, a recent study by the BMP’s revenue department revealed that over 40 per cent of property owners in the City try to default tax payment every year under the present Self Assessment System. “We cannot afford to lose nearly 40 per cent of revenue. Hence, our inspectors have to go and recover the dues,” BMP Deputy Commissioner (Revenue) B Lingaraje Urs said. Official sources said that tax defaulters tend to be evasive and take one or another excuse from paying tax. As property tax should be paid either at BMP revenue offices or at any Citizen’s Service Centre or designated banks under the present system, inspectors are not able to ensure 100 per cent recovery of dues, officials added.

BMP is planning to procure 300 machines and they will be put to use tentatively from April 2005.

Checks corruption

With the use of hand-held tax collection machines, it is expected that corruption in property tax collection too will scale down considerably as there is no scope for tampering with details in the machines, official sources said.

“Once details about tax payment are recorded, the machine will record and store the transactions. All details can be downloaded to the main server later,” officials explained.