Mumbai Property Tax Rates Likely to Increase by 14%
Birhanmumbai Municipal Corporation (BMC) has proposed to increase the property tax based on ready reckoner rates as on April 1, 2021. Officials said this could increase the current property tax rates up to 14 per cent. Ready reckoner rates help to calculate true market value of immovable property
Published -
Jun 20, 2021 7:39 PM
Birhanmumbai Municipal Corporation (BMC) has proposed to increase the property tax based on ready reckoner rates as on April 1, 2021. Officials said this could increase the current property tax rates up to 14 per cent. Ready reckoner rates help to calculate true market value of immovable property like land, residential, commercial industrial. It is one of the factors to calculate property tax. In Mumbai, there are 4.2 lakh property owners, of which 1.37 lakh have houses of area up to 500 sq feet. The last revision in property tax rates was done in 2015 for five years. As per the amendment in the Mumbai Municipal Corporation Act, a revision in the assessment of property tax is done for a period of every five years and revision can also be done at the end of the five-year term. The fresh revision was scheduled for 2020-2025, but the BMC had decided against revising it last year in view of the coronavirus pandemic. With revision, the BMC can increase the property tax up to 40 per cent. As per the proposal, however, the BMC will not revise the property tax rates for these four years as there is a case pending before the Supreme Court and the outcome of the case could affect the revised rules. Once approved the BMC’s revenue through property tax will go up by Rs 1,000 crore for 2021-22, which is much needed as Covid-19 has hit civic body’s income, officials said. BMC officials said that the proposed rules will not impact properties with area up to 500 square feet. The proposal will also extend relief to hotels registered with the tourism ministry, as they will be granted industrial status which will provide rebates in their water tax, electricity, sewerage charges, property tax, and development tax.
Tags : News/Views Supreme Court property tax BMC Mumbai Municipal Corporation Act Tourism Ministry Development Tax Rebates