Karnataka panel suggests hike in utility user charges to boost state’s revenue | Bengaluru News

Bengaluru: The state govt’s resource mobilisation committee, headed by retired IAS officer KP Krishnan, has recommended an increase in user charges for utilities as part of measures to strengthen Karnataka’s non-tax revenue. The committee submitted its report to chief minister Siddaramaiah on Thursday.Pointing to sluggish growth in non-tax revenue, the panel said there was a pressing need to rationalise and increase user charges in utilities. It urged the govt to adopt volumetric billing, supported by strong regulation and automatic indexation of user charges to inflation, to ensure sustainability.The committee further called for reforms in the tax structure to broaden the tax base and reduce dependence on a few key revenue sources. Currently, between 60% and 70% of the state’s total revenue receipts come from commercial taxes, excise duties, and motor vehicle taxes, the report noted.To enhance transparency and efficiency, the panel suggested auction-based digital licensing in the excise sector. It also recommended unlocking new revenue avenues through scientific asset valuation, leasing under public-private partnerships, and monetisation of urban land assets.The report proposed the creation of an economic policy wing within the finance department to monitor non-tax revenue and oversee asset monetisation initiatives.The recommendations form part of the committee’s roadmap for generating additional and sustainable revenue through transparent and technology-driven reforms.