Maharashtra: After Cabinet decision, BJP reminds Shiv Sena of full property tax waiver

This picture has been used for representational purpose

With there being no property tax hike for the next year following the state Cabinet's decision to not revise the capital value of buildings in Mumbai, the BJP has taken it upon itself to remind the ruling Shiv Sena about its promise of tax exemption for houses measuring less than 500 sq ft. It claimed that the Sena is deceiving Mumbai residents. The city has around 1.5 lakh flats measuring 500 sq ft, and on an average, nearly Rs 670 crore is collected by way of taxes from these flats, the BJP said. If this entire amount is waived off, the BMC would lose out on revenue.

Property tax together comprises eight components - general tax, water tax, sewerage tax, education cess, tree cess and water benefit tax, among others charges. General tax constitutes 10 per cent to 30 per cent of the total amount. Currently, the BMC is charging property tax from houses measuring less than 500 sq ft with only the general tax component exempted, while other charges remain. On Thursday, Shelar tweeted, "Despite the crunch in the coffers of the BMC during the Corona pandemic period, 50% reduction in premium was given to the builders…But the same Shiv Sena failed to abide by its earlier announcement of complete exemption of Rs 670 crore property tax to Mumbaikars owning 500 sq feet flats."

"Now the BMC has decided to incur a loss to the tune of Rs 1,042 crore through its announcement of no property tax hike for Mumbaikars for the next one year… With Diwali round the corner, these seem to be ‘fake announcements' only," he said. BMC sources said the proposal for waiving off the General Tax component was approved in 2019 but due to lack of clarity, the bills were issued only in January this year.