With its eye on next year’s civic polls, the state has decided not to implement the new property tax system that calculates the tax on the property's market value in Mumbai until next year.
The Cabinet on Wednesday decided to put the new tax structure, applicable to at least 3.48 lakh properties in Mumbai, on hold until March 31, 2012. The reason, government sources said, was that the mapping of properties is not yet complete.
“Property tax will continue to be charged at rateable value and will be converted to capitalised value from April 1 next year. The difference in the two will be adjusted in the bills with retrospective effect,” chief minister Prithviraj Chavan said.