Mumbai: No hike in property tax this financial year

The BMC is required to revised property tax rates every five years

There won't be any increase in property tax in the city in this financial year. Giving Mumbaikars a relief ahead of the civic polls, the state cabinet has decided against revising the capital value of properties in the metropolis. Capital value works as a parameter to assess the property tax by the BMC.

The chief minister's office said the pandemic and lockdowns have hit businesses, all sizes of industry, educational institutes and development works. "Majority of property owners and public representatives have been demanding a waiver or relaxation in the property tax from the BMC," it said, adding that the corporation will take a revenue hit of Rs 1,042 crore due to the relaxation.

Property tax in Mumbai is revised every five years and BMC was to implement new rates from 2020-2021. While it got deferred to 2021-2022, with the fear of a third
wave still looming, the proposed hike has been pushed to next year.

In June, the civic administration had proposed to raise property, but it was shot down by all members of the standing committee apparently because of the upcoming BMC polls early next year. A proposal for deferring the tax was then sent for the approval of the legislature since it entailed an amendment to the Mumbai Municipal Corporation Act. "With the state cabinet approving this, citizens will not be burdened for another year," said civic officials.

Additional Municipal Commissioner P Velrasu, said, "We had sent the proposal to defer the increase in property tax to next year as COVID fear is still looming."