Property tax in 700 areas in city set to fall
There’s relief for homeowners dreading the implementation of the civic body’s capital value property tax system in the city. Bowing to political pressure in view of the civic polls around the corner, the Brihanmumbai Municipal Corporation (BMC) has submitted a revised proposal, with a reduced rate of taxation.mumbai Updated: Nov 14, 2011 00:31 IST
There’s relief for homeowners dreading the implementation of the civic body’s capital value property tax system in the city. Bowing to political pressure in view of the civic polls around the corner, the Brihanmumbai Municipal Corporation (BMC) has submitted a revised proposal, with a reduced rate of taxation.
According to BMC’s calculations, property tax of just 19 of a total 719 pockets will rise. In the other 700 pockets, property tax is expected to either reduce or stay the same.
HT had, in its October 31 edition, reported how the BMC was getting ready to submit a revised proposal, with a lower taxation formula for the city.
Under the new proposal, most of the 19 pockets where taxes will rise are in the A and D wards in the island city that have a majority of old buildings like Fort, Colaba, Esplanade, Girgaum, Walkeshwar, Khetwadi and Grant Road.
This move will benefit homeowners the most. With the revised taxation, property tax will go down in 3.91 lakh residential units and will remain the same in 7.56 lakh residential units. It will increase only in 2.75 lakh households, the civic body said.
The proposal has reduced the general rate of taxation in all five major categories of properties in the city – residential, offices, banks, shops and commercial establishments, where the rate of taxation has reduced the most.
This move, however, will also mean the civic body’s coffers will take a hit. According to civic estimates calculated for 2.30 lakh of the total 3.20 lakh properties in the city, the original income expected was Rs 3,100 crore, the revised proposal is likely to fetch only Rs 2,600 crore.
The civic body was forced to submit a revised proposal after the standing committee, com prising a majority of Shiv Sena-BJP corporators, rejected the earlier proposal to implement the system, fearing a backlash from voters during the civic elections.
Additional municipal commissioner Rajiv Jalota couldn’t be contacted, despite attempts to reach him.
Standing committee chairman Rahul Shewale said, “I’m glad the administration has reduced taxation rates. This move will benefit lakhs of families. We will discuss this in the standing committee and take a decision accordingly.”