BMC collects Rs 3,740 crore property tax against target of Rs 5,400 crore

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The Brihanmumbai Municipal Corporation (BMC) has collected Rs 3,740 crore as property tax till January 24, against the revised target of Rs 5,400 crore. It had earlier set a target of around Rs 7,000 crore in the budget for 2021-22. The state government's decision to waive the tax for houses up to 500 sq feet has cost the BMC around Rs 463 crore ahead of the civic polls.

Every year the BMC collected around Rs 5,000 crore from property tax, which is the highest source of income after octroi tax was abolished. The collection in 2020-21 was less due to the Covid-19 pandemic.

"We estimated that the BMC will recover the pending tax. As per law, with revision, property tax rates can increase up to 14 per cent. The revision was expected to take place in 2020-21 for the next five years. However, due to the Covid-19 pandemic, the state decided not to increase the taxes," said a senior official from the BMC.

"Till now, we have collected Rs 3,740 crore which is more than three-fold of the collection last year on the same date. We are trying to achieve the target as soon as possible without waiting until March-end," said Vishwas Mote, assistant commissioner of Tax Assessment and Collection Department.

He added that the department will start legal action against defaulters to recover the tax. Last year, the BMC collected Rs 1,223 crore till January 24. The BMC had a target of collection of Rs 6,788 crore property tax in 2020-21 and revised it to Rs 5,300 crore later. In 2020-21, property tax worth Rs 5,135 crore was collected.