Not only water and power, your property tax may also get steeper
After an imminent hike in water and electricity tariffs, here is some more bad news for the island city.mumbai Updated: Feb 23, 2012 01:08 IST
After an imminent hike in water and electricity tariffs, here is some more bad news for the island city.
The Brihanmumbai Municipal Corporation (BMC) is planning to revive its capital-value based property tax proposal.
The civic body plans to table the proposal as soon as a new standing committee is constituted. If approved, the new tax system will result in an increase in property tax paid by areas in the island city, which have several old buildings, and places that paid negligible amount in the old system.
The old system is based on the rateable value of the property and is calculated using the rent the property fetches. The new system will be based on the property’s current market value as well as give weightage to area of flat, age of building, usage of land and type of construction.
Fearing a backlash during the civic polls, politicians had fought hard to put off the proposal when it was first tabled last year. It was rejected in September, 2011. The administration submitted a revised proposal with lower rates of taxation in November, but it couldn’t be implemented because of the code of conduct.
Additional municipal commissioner Rajiv Jalota said, “We are planning to table the proposal before the new standing committee. This will mostly happen in March or April.” Jalota said the rate of taxation would not be lowered any further.
Sena corporator and standing committee chairman Rahul Shewale said, “We will make changes once the proposal is tabled to ensure that residents don’t have to pay higher taxes.”
Rajendra Mehta, president of the Property Lessors Association, said the new system would mean high taxation, especially for new buildings and reconstructed ones. “The BMC wants to tax properties by the super built-up area, by taxing open spaces, lift ducts, etc. But the state insists that properties must be sold solely on the basis of carpet area. How is this fair?”