MUMBAI: For the fifth year running, state govt has announced property tax waiver for residential units up to 500 square feet in size. On Monday, state cabinet approved a proposal for the waiver of property tax for which an ordinance will be issued.
This being an election year, political observers said more sops will be offered to the electorate.
Maha Vikas Aghadi (MVA) had first announced a waiver for 2019-20 following the Covid-19 pandemic.Since then, MVA and now Mahayuti govt have been waiving off property tax.
Civic officials said BMC has annually been losing around Rs 300 crore on account of this decision. There are 16 lakh residential units that are less than 500 sq ft in size. Property tax includes water tax, water benefit tax, sewerage tax, sewerage benefit tax, general tax, education cess, tree cess, street tax and betterment charges.
In a press release, state govt said Monday’s decision would save Mumbaikars an additional tax burden of Rs 736 crore. BMC administration has already revised its revenue collection from property tax from the budgeted Rs 6,000 crore to Rs 4,500 crore after it lost a review petition in Supreme Court on the capital value system. The press release said amendments need to be made to the law in light of SC judgement. “There will be no revision of capital value and Mumbaikars will be given a waiver,” said the press release.
This being an election year, political observers said more sops will be offered to the electorate.
Maha Vikas Aghadi (MVA) had first announced a waiver for 2019-20 following the Covid-19 pandemic.Since then, MVA and now Mahayuti govt have been waiving off property tax.
Civic officials said BMC has annually been losing around Rs 300 crore on account of this decision. There are 16 lakh residential units that are less than 500 sq ft in size. Property tax includes water tax, water benefit tax, sewerage tax, sewerage benefit tax, general tax, education cess, tree cess, street tax and betterment charges.
In a press release, state govt said Monday’s decision would save Mumbaikars an additional tax burden of Rs 736 crore. BMC administration has already revised its revenue collection from property tax from the budgeted Rs 6,000 crore to Rs 4,500 crore after it lost a review petition in Supreme Court on the capital value system. The press release said amendments need to be made to the law in light of SC judgement. “There will be no revision of capital value and Mumbaikars will be given a waiver,” said the press release.