Mumbai Proposes Waiving Increase in Property Tax for One Year

In what may bring relief to lakhs, the BMC has proposed a complete waiver in the increase of property tax rates for one year. The BMC’s move, if approved at a general body meeting, will benefit over 2.83 lakh property owners, who could face increased property tax rates of up to 40 per cent. Officials, however, did not reveal the revenue loss that the move would cause to the civic body. In Mumbai, there are 4.2 lakh property owners, of which 1.37 lakh have houses of area up to 500 sq ft eligible for a complete property tax waiver. Last revision in property tax rates happened in 2015 for five years. According to the amendment in the Mumbai Municipal Corporation Act, the revision in the assessment of property tax is for a period of every five years and this can be done at the end of the five-year term. The fresh revision was scheduled for 2020-2025. The BMC’s move, if approved at a general body meeting, will benefit over 2.83 lakh property owners, who could face increased property tax rates of up to 40 per cent. Officials, however, did not reveal the revenue loss that the move would cause to the civic body. In Mumbai, there are 4.2 lakh property owners, of which 1.37 lakh have houses of area up to 500 sq ft eligible for a complete property tax waiver. While the state government said the waiver will be on general tax, which amounts to only about 20 per cent. There are eight other components like sewerage tax, water tax, education cess, tress cess. There is no clarity on these components and whether they should also be waived off or not?