Mumbai: Elections BMC’s biggest obstacle to raising income

Ahead of the civic elections, the administration’s proposals to raise or impose charges are being stonewalled by all parties; now, it wants to increase beautification charges as well

Desperate to shore up its revenue that has been badly hit due to the Covid pandemic, the BMC has been coming up with proposals, but is unable to overcome a daunting obstacle — political opposition. With the civic polls scheduled for early next year, corporators from all parties are playing safe. In its latest attempt, the administration plans to increase beautification charges that are levied on certain premises.

Since the Covid outbreak last year, the corporation’s regular sources of income have become a trickle and it hasn’t been able to hike charges and fees. Over the past three years, BMC’s income has remained steady at a little over Rs 22,000 crore, which would have gone up had there been no lockdown.

In the past month, the BMC administration put up four proposals but all were stonewalled by corporators. On June 12, a proposal was tabled to raise property tax based on ready reckoner rates up to 14 per cent that was supposed to be effective from April 2021 to March 2025. It said the new rates would bring in over Rs 1,000 crore, but all parties including the ruling Shiv Sena opposed it and sent back the proposal.

Also read: Game of self-promotion kicks up ahead of BMC polls

A similar circular to impose the long-pending fire service fees with retrospective effect faced criticism. It said a one-time fire service fee will be collected from developers or owners/occupiers or architects of the buildings that came up between March 3, 2014, and June 6, 2021. With the occupation certificate given to buildings, it meant that the component would be levied on housing societies. Besides this, the recovery of the annual fee, about 1 per cent of the fire service fee, would be added to the property tax of the buildings, said the circular by the fire brigade. An outrage by corporators prompted the standing committee to direct the administration on July 9 to submit data on the number of buildings constructed from 2014, fire service fee to be recovered from developers and the number of societies where the charges will be borne by the resident.

In the last committee meeting on July 28, a circular to collect property tax from 46,563 tenants living on municipal properties from April 2017 met the same fate. The standing committee raised queries and asked the administration to reply in a week.

On Wednesday, the civic body will submit a proposal for a 5 per cent hike in beautification charges and deposits. At present, it collects annual charges of Rs 6,500 and Rs 20,000 deposit from complexes that maintain fountains, artificial ponds and waterfalls and rock designs on their premises. Officials are hopeful it will be cleared as it won’t affect the common people.  “With income falling drastically, the administration is trying to generate revenue in new ways. But it needs to be sanctioned by the standing committee and the house and It should not increase the burden of the common people,” said Ravi Raja, leader of the opposition. He said the corporation should cut down expenses on beautification projects where money will ultimately go to contractors.

“It is the need of the hour to take measures to increase revenue but it is not acceptable to increase taxation in the lockdown situation. Revenue can be increased by better utilisation of available resources and cutting down unwanted expenses,” said Bhalchandra Shirsat, a BJP corporator.

Proposal to waive property tax

Another proposal to waive property tax of residential properties owned by ex-servicemen, wives of martyrs and parents of unmarried martyrs will be submitted before the standing committee on Wednesday. The proposal is in line with a state notification of September 2020 that asked all urban local bodies to waive property tax for ex-defence personnel. The relief will be granted only for one property for those who are living in the state for the last 15 years. “The BJP is going to oppose it as an only general component will be waived just like in case of small houses,” said corporator Balchandra Shirsat.

Rs 22,572 cr - BMC’s estimated income for 2020-21

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!