Relief for Mumbai residents as Maharashtra govt decides not to hike property tax

File photo for representation

In a significant relief for the residents of Mumbai, the Maharashtra cabinet Monday decided that there will be no increase in property tax in the city.

The decision, proposed by the urban development department, is seen as a measure to alleviate financial burdens on the residents ahead of civic polls due since 2022.

The proposal was cleared at a weekly cabinet meeting chaired by Chief Minister Eknath Shinde in Mumbai. This decision would save Mumbai residents from an additional financial burden of Rs 736 crore, said an official statement without providing further details.

The cabinet cleared another proposal to hold employment fairs at Chhatrapati Sambhajinagar in central Maharashtra covering the entire Marathwada region (eight districts) as well as in Nashik, Pune and Konkan divisions.

Titled the 'Namo Mega Job Fair', such an event has already been held at Nagpur, which garnered a huge response, said the statement.

There will be six such fairs where at least two lakh jobs will be generated, it adding, the cabinet approved an expenditure of Rs 30 crore for organising these events.

A social justice department proposal to launch the 'Chief Minister Vayoshri Scheme' for senior citizens was also cleared at the cabinet meeting.

Under the scheme, centres for mental well-being and yoga therapy will be set up for senior citizens.

At least 15 lakh senior citizens who are above 65 years of age would benefit from it, said the statement.

Notably, the Brihanmumbai Municipal Corporation (BMC) budget presented on Friday, February 2, said the major sources from which estimation of revenue is made for the year 2024-25 are, Grant-in-aid on account of compensation in lieu of Octroi Rs 13,331.63 crore, income from Property Tax Rs 4,950 crore, income from D.P. Department Rs 5,800 crore, income from Interest on Investments Rs 2206.30 crore and income from Water and Sewerage Charges Rs 1,923.19 crore.

The BMC said, "In the financial year 2022-23, property tax has been collected in the same manner as in 2019-20 and the actual income from property tax was Rs 4,994.15 crore. In the financial year 2023-24, revenue from property tax was estimated to Rs 6,000 crore which is revised to Rs 4,500 crore, a fall by Rs 1,500 crore." (With inputs from PTI)