Maharashtra passes bill giving property tax exemption to 11L Mumbai houses
The Maharashtra legislative assembly on Wednesday passed a bill which waives off property tax for five years for the houses in Mumbai with an area upto 500 sq ft.
During the discussion in the house, Mohammed Arif Naseem Khan of Congress demanded that the exemption should be given for 15 years.
Khan also said that the Municipal Corporation of Greater Mumbai levies tax on built-up area of house, whereas the stamp duty is determined as per the carpet area. The civic body should also levy tax on carpet area (which is lesser of the two), to reduce the tax burden by 15 to 20 percent, he said.
Khan also demanded that MCGM be divided into three civic bodies, for the main city and the eastern and western suburbs, for better management of the country's financial capital.
Parag Alavani (BJP) said the capital value-based property tax system was aimed at having simple, transparent and non- discretionary tax structure, and not to generate more revenue.
Due to the capital value-based tax, MCGM gets additional revenue of Rs 246.41 crore, he said, adding that the civic body fails to utilise the entire budget amount and has over Rs 30,000 crore in fixed deposits in banks.
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