Will GST play spoilsport for property tax concession?

All it took the Shiv Sena to fulfil its forgotten manifesto promise was a rap from their chief. The promise that the corporators had been taken to task was waive off property tax

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All it took the Shiv Sena to fulfil its forgotten manifesto promise was a rap from their chief. The promise that the corporators had been taken to task was waive off property tax on houses up to 500 sq ft and 60 per cent concession on houses between 500 and 700 sq ft.

Following the reminder, Sena group leader in BMC Yashwant Jadhav moved a notice of motion that was cleared on Thursday. However, it will be the BMC’s administrative wing that will decide whether it gets implemented or not.

Also read: Now, Mumbaikars who live in 500 sq ft area homes won't have to pay property tax

Jadhav said, "I had put forward a notice of motion that was passed and once the authorities notify it, it can be implemented." During its BMC election campaign, the Sena has promised to exempt property tax, a high earner for the civic body as it collects about Rs 350 crore from 14.98 lakh properties. But, the promised concessions would have cost the civic body around Rs 100 crores.

Also read - GST: Ready to move-in flats likely to cost more

A civic official said, "We are assured of getting compensation for losing out on the largest revenue source, octroi. So, we will now have to decide if we can afford to give up our other source of income – property tax – by giving such heavy rebate." Deputy Municipal Commissioner, BG Pawar, said, "We are yet to see the approved proposal. Once the civic administration gives its feasibility report, can it be finalised."

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