The new taxation system, if introduced by the Brihanmumbai Municipal Corporation (BMC), will considerably hike the property tax, which will be evaluated on the new capital value.
This new taxation system will affect owners of 2.27 lakh properties in the city. The civic body, which had planned to introduce the new taxation system from April 1, 2010, is already behind schedule in implementing it.
Determined to ensure that the new system is implemented at least partly, the BMC has now planned to send new property tax bills to those 2.27 lakh property owners whose data is ready with the civic body.
Rajiv Jalota, additional municipal commissioner, said, “Out of total 3.5 lakh properties in the city, we aren’t yet ready with the records of about 1.2 lakh properties. Hence, rather than waiting to get the complete data ready, we will start sending out bills to those whose records we possess.”
As Hindustan Times had previously reported, the BMC has sent provisional property tax bills to all owners across the city, with rates adopted from that property’s last year’s tax itself.
This confusion among citizens over such provisional bills had caused a 14% dip in the civic body’s collection.
“We are confident of covering up that deficit in the collection,” Jalota said.
An official of the assessment and collection department said, “The mapping of the rest of 1.3 lakh properties will take some time as we are yet to decide the way we want to map them. So, implementing it across the city before the end of this financial year seems likely.”
Even though the administration seems gung-ho about implementing the new system, the political class seems quite reluctant.
A senior Shiv Sena corporator said, “Since elections are due this year, we are not too keen on introducing a new taxation system, which is increasingly being seen as anti-people. We’ll try and push it for a later date, if the administration is adamant.”