This year the civic administration is keen on implementing the hike as there isn’t any other fixed income source for the corporation
With waiving of property tax for up to 500 sq ft carpet area, the BMC had lost Rs 462 crore. Pic/Pradeep Dhivar
The citizens may have to pay 12 to 18 per cent more tax from now on, as the BMC is likely to revise property tax. The revision of tax was supposed to take place in 2020. However, it is finally on cards of the BMC and it may be implemented from April 1, in the upcoming financial year 2022-23.
“As per the MMC Act, property tax is revised every five years. It will be implemented from the upcoming financial year,” said Vishawas Mote, assistant commissioner, assessment and collection department. He added the hike will be between 12 to 18 per cent. The civic body had revised property tax on capital base in 2015 and the next revision was expected in 2020. But as the city was hit by the pandemic, the state government decided not to increase the tax.
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In the last year's budget, 2021-22, the BMC estimated Rs 7,000 crore revenue from the property tax, taking into consideration the revision of tax. But the standing committee refused to revise the tax structure which proposed to increase the tax by 15 per cent. With waiving of property tax for up to 500 sq ft carpet area, the BMC lost Rs 462 crore. The civic body collected Rs 4,853 crore till March 23 (till eight days left to the current financial year).
This year the administration is keen to implement the hike as there isn't any other fixed-income source for the corporation. The BMC will undertake the measures to increase its income from property tax, including capital value revision, as per the Mumbai Municipal Corporation Act, 1888. It will be implemented for the next three years starting from 2022-23. Another official added that it will be put for information for the next standing committee but as per the Act, the tax can be revised every five years and there is no need for permission.
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