In the wake of the financial ramifications on the common man due to the COVID-19 pandemic, the Brihanmumbai Municipal Corporation (BMC) has rejected the proposal to increase property tax rate by 14 percent in Mumbai.
In a major revelation, the proposal to increase property taxes by 14 percent, laid down by the Brihanmumbai Municipal Corporation (BMC) has been rejected unanimously by the parties in the standing committee. According to the members of the committee, the proposal, if accepted would cause injustice to the citizens who are already under the pressure of the COVID-19 pandemic.
The civic body, in its proposal, had recommended that property tax should be calculated as per the ready reckoner rates as on April 1, 2021. With the revised rates, property tax on all properties would have gone up by nearly 14 percent. Had it been passed by the committee, the rules would have been made applicable for four years, i.e. from April 1, 2021 to March 31, 2025. With this, BMC’s income through property tax was expected to go up by Rs 1,000 crore.
While the move would have indeed added to the financial burden of the denizens, it would not have impacted the rebate provided to people who have properties with an area less than 500 sq ft.