Mumbai: Shiv Sena sticks to poll promise of full property tax waiver
On Monday party chief Uddhav Thackeray said the party will ensure people get relief in the next one year. The proposal will be tabled in BMC next month. FILE PIC
All it took for Shiv Sena was a rap from the top boss to get a poll promise moving in the BMC. Yashvant Jadhav, leader of the house in the civic body, moved a notice of motion to give full waiver of property tax on houses up to 500 sq ft and 60 per cent rebate for structures between 500 sq ft and 700 sq ft. However, BMC officials say the waiver will put a burden of Rs 500 crore on the civic body.
During the BMC elections, Sena had promised in its manifesto to give complete relief to citizens having a home of 500 square feet and partial concession on houses between 500 sq ft to 700 square feet on property tax. However, after Sena came to power in BMC, leaders forgot to follow up the issue. On Monday, at Sena's foundation day, party chief Uddhav Thackeray echoed the promise and said the party will ensure people get relief in the next one year.
Jadhav told mid-day, "The proposal will be tabled in the general body meeting of BMC in the first week of July. Once it gets passed in the general body, it will be sent to state government for the final nod. Sena had promised to give relief citizens in property tax and we will fulfill it." He added, "For the waiver in property tax, we need to make the changes in the BMC Act, which is why the state's approval is necessary."
Rs 500-crore burden
Property tax is civic body's second biggest source of income after octroi. BMC earns about Rs 4,000 crore every year from property tax. According to officials from the assessor and collection department, if the proposed waiver comes into effect, it will put a burden of Rs 500 crore on BMC. "The tax rebate could affect the financial stability of the corporation, as octroi will now be replaced with GST. We have to think of generating some additional source of revenue to tackle this waiver," said an official.
Rs 4K cr Amount the civic body earns in property tax every year
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