Updated: March 17, 2015 7:38:28 pm
The Brihanmumbai Municipal Corporation (BMC) is expecting a 15 per cent gain in property tax collection across the city, with its revised set of rules for property tax collection for 2015-2020.
The revised set of rules, which also fixes increased rates for properties across categories, was presented to the group leaders of the corporation on Monday. The property tax department is expected to present the new rules to the standing committee on Wednesday.
The cash-rich BMC’s current estimates for property tax are Rs 4,400 crore approximately. The BMC has also done away with the formula change in collecting property tax, which was opposed by politicians and citizens across board last year. Apart from the revised rules, BMC will also revise its current tax slabs, which is expected to increase property tax by an average of 40 per cent, further burdening Mumbaikars.
Best of Express Premium
“We faced a lot of problems while introducing the capital value-based system. We have identified those glitches and revised it in the new rules. When the system was introduced in 2010, it also provided for revision every five years, so the new set of rules will be applicable till 2020 after it has been approved,” said a senior civic official from the assessment department.
In the revised rules, BMC has also done away with its new formula for collecting property tax.
Stating that it wanted to curb revenue losses, the civic body had proposed a new formula for calculating tax, “carpet area × Ready Reckoner Rate × 1.2%” in July 2014. The proposal was, however, rejected by the standing committee members, who criticised the civic body for failing to relieve the burden on property owners.
The revised set of rules has proposed the formula as “carpet area × RRR”, a senior civic official confirmed.
“The earlier rules had classified properties in 21 different categories, which made assessment very difficult. In the new set of rules, we have brought down the number to six categories to make the process of levying tax simpler,” the official added.
In September 2014, with an increasing number of petitions filed in the Bombay High Court (HC), which said that BMC was wrongly calculating property tax on the built-up area, the civic body had formed a committee to review the existing set of rules. The new set of rules is expected to come into effect from April 2015.
🗞 Subscribe Now: Get Express Premium to access our in-depth reporting, explainers and opinions 🗞️
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.