This year, Navi Mumbai residents will not have to pay more property tax

Tax on residential properties to remain at 32.67% of their rateable value

mumbai Updated: Feb 17, 2018 00:58 IST
G Mohiuddin Jeddy
G Mohiuddin Jeddy
Hindustan Times
Mumbai,NMMC,property tax
High-rises near the Palm Beach Road. The NMMC chief said keeping the tax rates steady means residents won’t be burdened with an additional expense. (HT FILE)

The property taxes will not see any surge this year either. The civic administration on Friday presented a proposal to continue with the same tax rates in the financial year 2018-19, as they were, in the previous financial year. The standing committee approved the proposal unanimously.

As per section 99 under the Bombay Provincial Municipal Corporations (BPMC) Act 1949, a civic body is required to finalise its tax rates before February 20 of the current financial year, for the next financial year. This has to be done through a proposal to the standing committee or the general body, before the deadline. It was in this context that the administration put forth the proposal for tax rates approval for the year 2018-19.

As per the approved proposal, the tax on residential properties will be 32.67% of their rateable value, while for commercial and industrial properties it will be 53.33%.

Speaking on the proposal, municipal commissioner Ramaswamy N, said, “We have continued with the same property tax rate structure that has been in place in the city for the past 12 years. It will provide relief to the residents and not burden them with an additional expense. The decision has been taken keeping their interest in mind.”

On the demand by some standing committee members for an amnesty scheme, the commissioner said, “The suggestion is good, but it involves a lot of issues. We have been making good recovery, as in the case of land under construction (LUC) cases, which had earlier not been assessed. Rs128 crore has been recovered from LUC and the properties have been regularised.”

“We have to take into account how many common people will benefit from the amnesty scheme. Such a scheme can be offered only after detailed study. No decision has been taken by us as of now,” he said.

Claiming that the civic body has been successful in recovering arrears, Ramaswamy said, “Our current bill recovery is almost 100% with little arrears. As for the old arrears, most pertain to LUC, which were not assessed, or to the MIDC company cases that are pending in court. We cannot take coercive action against them.”

“We have appealed to Thane Belapur Industries Association to get the industries to pay at least the principal amount for the current and previous years, while the delayed payment of interest can be paid later. We will intensify the collection drive in the remaining months and the rest half of this financial year,” Ramaswamy said.

“We have also taken up the arrears issue with government departments like the MSEDCL and the railways. Action is being taken where payments are not made,” he said.

The commissioner said that over Rs400 crore have been recovered this financial year so far.

“I am confident that the figure will rise much higher by the end of the financial year in March,” Ramaswamy said.

First Published: Feb 17, 2018 00:57 IST