Assembly clears property tax waiver bill

This bill converted the ordinance issued by the Maharashtra Vikas Aghadi (MVA) government last month to give respite to 1.61 million flat owners in the city ahead of the civic polls

Mumbai The Maharashtra Assembly on Wednesday cleared the bill paving way for property tax waiver of residential units measuring less than 46.45 square metre or 500 sq ft in Mumbai. This bill converted the ordinance issued by the Maharashtra Vikas Aghadi (MVA) government last month to give respite to 1.61 million flat owners in the city ahead of the civic polls.

On Wednesday, minister of state for parliamentary affairs Sanjay Bansode presented the bill which was cleared without any discussion. (/HT PHOTO)

On Monday, the bill was tabled in the House. However, owing to the ruckus in the House, misinformation spread that the bill was cleared, whereas it was not the case. The state urban development minister Eknath Shinde said that the bill related to the property tax in Mumbai was tabled in the state legislature on Monday and was cleared on Wednesday. He said that the confusion was due to the chaos when it was tabled in the house on Monday.

On Wednesday, minister of state for parliamentary affairs Sanjay Bansode presented the bill which was cleared without any discussion.

The bill passed in the lower House will allow amendments in three legislations — The Mumbai Municipal Corporation Act, The Maharashtra Education and Employment Guarantee Cess Act and The Maharashtra (Urban Areas) Protection and Preservation of Trees Act.

“Due to the current rising inflation, the increased property tax levied by the BMC is not affordable to the people residing in smaller flats. Also due to Covid, many businesses in Mumbai have been closed and many people have lost their jobs and source of livelihood. In this backdrop there was consistent demand for the waiver of the property tax…,” states the bill issued by the state urban development department on March 9.

The announcement to waive of property tax is part of a poll promise made by the Shiv Sena in the run up to the BMC elections held in 2017. In 2019, the erstwhile BJP-Sena government led by Devendra Fadnavis made the required amendment with a rider that the waiver would only be limited for the general component of the tax, which is 10-20% of the total. But last year, it clarified that it would issue property tax bills to owners of such structures, with a partial waiver. The partial waiver only included the general tax component.

Meanwhile, the state Assembly passed another bill to amend the Mumbai Municipal Corporation (MMC) Act for appointing an administrator on the request of the civic body. This bill will also be sent to the Upper House for approval. On February 17, the state government had approved an ordinance for implementation of its decision. Municipal commissioner IS Chahal has also taken charge as an administrator of the civic body on March 8. The term of the civic body ended on March 7.

The number of councillors has increased from 227 to 236 and work of boundaries demarcation and ward delimitation is under process by the corporation. The state election commission has communicated to the state government that due to Covid, change in OBC reservation and order by the Supreme Court, the work of boundaries demarcation and ward delimitation is still in process.