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Bangalore pays second highest direct taxes in the country

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Written By mcadambi - 1 April, 2008

Bengalooru suddi Bangalore cess

According to the new RBI report on Municipal Finances in India, as indexed in the recent Budget speech of BBMP, Municipal finances of Bangalore rank very low. What is startling is that even tough we pay the second highest share of direct taxes (i.e personal taxes like what you and me pay out of our salary), it has no correlation with the per capita municipal tax.
According to this report from 'Economic Times':
http://economictimes.indiatimes.com/Bangalore_pips_Delhi_in_I-T_mop-up/articleshow/2910707.cms
"It may not be the best of times for IT professionals of Bangalore, but the cyber city has nevertheless overtaken Delhi in terms of total collection of personal income-tax, an indicator of economic growth of a city. According to Central Board of Direct Taxes (CBDT) figures (till March 25, 2008) income-tax collections in Bangalore stood at Rs 11,500 cr against Rs 10,400 cr in Delhi."
If BBMP is allocated atleast 10% of our direct taxes every year, it would give a huge boost to our municipal finances and enable BBMP to invest more in civic amenities / health care / education / infrastructure etc etc....

COMMENTS

Subir Roy, a long time

mcadambi - 2 April, 2008 - 14:21

Subir Roy, a long time resident of Bengaluru and a columnist at 'Business Standard' writes about how BBMP mismanages it's finances:

http://www.business-standard.com/common/news_article.php?leftnm=4&subLeft=2&chklogin=N&autono=318693&tab=r

But then, the blame can be placed partially on residents as well. Even tough real state prices, direct taxes per capita, are among the highest in the country, we, the citizens of bengaluru do not pay proportionate property taxes.

If we oppose property taxes, then how can we expect good infrastructure? 

Compare it

silkboard - 2 April, 2008 - 17:28

I too read Subir roy's article with great interest (I am a Biz-Standar fan in general). I was hoping Mr Roy would do a comparison of BBMP and a similar non metro city like Pune or Hyderabad. Comparisons like that should tell us what BBMP is not collecting from us are not collecting well enough. Let us look around on Hyd (GHMC) website and try such comparison.

Great article by Subir Roy &

Naveen - 3 April, 2008 - 08:43

Great article by Subir Roy & cud'nt agree with him more.

I wonder why we in Begaluru

mcadambi - 3 April, 2008 - 18:47

I wonder why we in Begaluru cannot go in for a city administration on the model of Chennai. Since the model serves them well, there is no reason to believe that it cannot be replicated in Bengaluru.

Interesting Stuff !

Naveen - 1 April, 2008 - 09:38

Thanks for the Update - today, we are the 2nd highest income-tax paying city, though in population, we may be 5th.

This empahsies the success story of the city with it's many high tech & research companies.

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