Software charge in Bengaluru: Property owners pay an additional charge with tax, here’s what it is and how much it could cost | Today’s news
Property owners in Bengaluru have to pay an additional fee in addition to property tax. The Greater Bengaluru Authority (GBA) has started levying annual “software charges” on commercial and residential properties, according to media reports. The new charge has now sparked debate, drawing criticism from taxpayers over the additional charge.
What is Software Charge in Bengaluru
According to a Hindustan Times report, the software fee is charged along with the annual property tax by the five municipal corporations under the GBA. Supposedly because of the technology that allows property owners to pay civic fees online.
How much do property owners have to pay
The GBA will reportedly charge an annual “software fee”. ₹200 on residential property. There is a fee for commercial properties ₹1000 as per reports.
The Deccan Herald reported that the new tax demand comes in the middle of the financial year. It is also said that the newly imposed fee has arrived without any official announcement.
Reportedly, the software fee has left many questioning the additional fee and its timing.
GBA breaks the silence
GBA reportedly clarified that the software fee was introduced as a necessary measure. It is meant to cover the recurring costs of maintaining and upgrading the digital infrastructure used for property tax collection and other services related to civic amenities. Officials reportedly said that the authority has no independent source of revenue to fund IT-related expenditure in the sector.
GBA Special Commissioner (Revenue and IT) Munish Moudgil defended the software levy and said that civic services in Bengaluru have been changed due to the introduction of technology.
“In building a world-class city, we need world-class software and IT infrastructure,” Moudgil said, according to Hindustan Times. He allegedly claimed that the development and maintenance of these digital systems required a significant amount of funding. He added that annual ₹200 charge for residential properties is nominal compared to the time and convenience offered to citizens through digital services.
GBA reportedly cited its e-Khata system as an example of the extent of its digital transformation. Moudgil claimed that nearly 12 lakh e-Khats were issued in less than two years, which he said would not have been possible with traditional paper systems.
The GBA also claimed that digital systems have helped speed up disposal rates by around 98%, as applications are usually processed within seven to eight days. He also added that applicants usually receive e-Chatas in about a week.
