No increase in property tax, BMC to lose income of Rs 1,000 crore
The Maharashtra government’s decision not to raise property taxes for the second year in a row will result in a loss of around Rs 1,000 crore for BMC, officials from the agency’s appraisal and collection department said on Friday. civic.
On Wednesday, before the BMC polls scheduled for next February, the state cabinet gave the green light to the proposal not to revise property tax rates.
According to the law, with the revision, property tax rates can increase up to 14 percent. The review was scheduled to take place in 2020-2021 for the next five years. However, due to the Covid-19 pandemic, the state has decided not to raise taxes. In addition, BMC political leaders as well as the state wanted to grant property tax relief for an additional year, officials said.
“With a 14% increase in property tax, the civic organization could have earned an additional 1,000 crore rupees. The decision not to raise taxes will have an impact on revenue collection, ”an official said.
Mumbai has 4.2 lakh taxpayers. In 2020-2021, a property tax valued at Rs 5,135 crore was collected, which was lower than BMC’s original target. For 2020-2021, the BMC has set a target of Rs 7,000 crore in income from property tax.
Meanwhile, the BJP has again targeted Shiv Sena for the property tax exemption for homes up to 500 square feet. Party MP Ashish Shelar said if BMC misleads people about concessions for homes up to 500 square feet, it gives a 50 percent concession. to builders.
“During the pandemic, despite the lack of money, the company reduced the premium payable by builders by almost 50%. However, he did not grant a waiver to ordinary people, ”Shelar said.