State assembly amends Act, ensures capital value of property will not be revised in FY2021-22
MUMBAI: In a relief for Mumbaikars on the eve of the civic body polls due early next year, the state legislative assembly has approved a bill that will freeze the capital value of properties in the city, resulting in lower property tax bills in this financial year. The assembly on Tuesday approved an amendment to the Mumbai Municipal Corporation Act, 1888, which will ensure that the capital value of buildings and land in Mumbai, based on which property tax is charged, will not be revised in the ongoing financial year.
According to the Mumbai Municipal Corporation Act, property tax is determined according to the capital value of a building or land. The act also provides that the capital value of these landed properties be revised every five years and as such, a revision is due in 2020-21. However, the Covid-19 pandemic, the resultant lockdown and economic distress prompted the state government to decide last year that the capital value of land and buildings will not be revised in 2020-21 and that the property tax will be the same as in the year 2019-20. Since the economic stress caused by the pandemic is ongoing, it was decided to continue with this sop and accordingly, the amendment to the act will ensure that property tax bills will be the same as in 2019-20, and they will be revised only in 2022-23.
Leader of the opposition Devendra Fadnavis said that the Brihanmumbai Municipal Corporation (BMC), which has fixed deposits to the tune of Rs78,000 crore, should waive off the property tax of residential units up to 500 square feet. He pointed to how the Shiv Sena had promised this in its manifesto for the 2017 BMC elections. Urban development minister Eknath Shinde said that the proposal is under consideration. He added that the cap on property tax for two years would cost the BMC Rs1,000 crore each year, and also lead to a commensurate benefit for citizens.