The BMC has now decided to recover pending property tax dues for the year 2019-20 which is likely to generate a revenue of Rs 300 crore. The state government had in 2019 exempted property tax of residential properties measuring up to 500 sq ft, but later it was clarified that only the general tax component was exempted. 

“In 2019, the state government cleared a bill to exempt property tax of residential properties measuring up to 500 sq ft. But the state government only exempted the general tax while other taxes, cesses such as water tax, water benefit tax, road tax, tree tax, and state and BMC education cess were unchanged. We will recover the pending tax which was not recovered in that year due to some technical error,” said a Brihanmumbai Municipal Corporation official. As there was confusion regarding which components were to be charged that year, the BMC had not issued property tax bills to around 1.36 lakh residents living in such houses.