Property tax expected to go down in Mumbai, but the corporators, who are not allowing the house to function, will have to pass the proposal by March 20 for the reduced rate to take effect in this fiscal
There is good news for Mumbaikars with property tax expected to go down.
The administration on Monday suggested that, the property tax be calculated on carpet area instead of built up area as suggested earlier.
Earlier, the formulae was the Ready Reckoner rate multiplied by 1.2 (base rate) multiplied by built-up area (carpet area x 1.2). But the new formula will be Ready Reckoner rate x 1.2 x carpet area.
As per the BMC, the burden on the tax payer will reduce from the current 27.43 to 14.52 per cent since the additional 1.2 base rate will be gone.
However, the corporators, who are not allowing the house to function, will have to pass the proposal by March 20 or else the burden shall remain.