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BMC to collect property taxes from builders in advance

MoS for urban development announced the decision in order to avoid instances of builders passing on the burden of unpaid taxes to the buyer/housing society

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The BMC will soon start collecting property taxes from builders before issuing them occupancy certificates, to avoid harassment of flat buyers and cooperative housing societies that face notices for non-payment of the taxes the builder was supposed to pay. Replying to a Calling Attention motion raised by Leader of Opposition Ekanth Khadse, Minister of State for Urban Development Bhaskar Jadhav told the state assembly yesterday that the advance tax collection will prove helpful to buyers. The motion was about the BMC notices issued to over 3.22 lakh flat buyers in Mumbai for outstanding dues payable by the builders.u00a0

Members cutting across party lines drew the MoS’s attention to the hardship faced by innocent buyers who pay their taxes on time, but bear the burden of taxes unpaid by the builder since the building’s construction. The dues are slapped on the buyers instead, or the housing societies, that come into existence after the sale of the flat or the building. Accepting the contention, the Minister said that to avoid such incidents, the government has decided to allow collection of advance property tax to avoid hardships to flat owners.

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