BMC defers decision to impose SWM charges after property tax bills hike

The civic administration had proposed implementation of the SWM charges in its 2025-26 budget. The fees ranged between Rs 100 to Rs 7,500 depending on the entities on which it would be imposed. The civic body had earlier aimed towards generating Rs 687 crore in its revenue.

“Taking into account the additional financial burden on citizens due to the revised property tax bills, Chief Minister Devendra Fadnavis and Deputy Chief Minister and Urban Development Minister Eknath Shinde recommended a reconsideration of the proposed Solid Waste Management (SWM) charges. Accordingly, BMC has decided to defer the implementation of SWM charges,” the BMC said in a statement issued on Thursday.

The proposed user fee would be implemented on both residential and commercial properties. The minimum fee of Rs 100 would be imposed on residential buildings that would be less than 50 square meters, while the maximum amount of Rs 7,500 crore was to be imposed on hotels, banquet halls and commercial properties having a floor size of 3,500 square meter or more.

After announcing the draft of this new policy, the civic body had invited suggestions and objections from citizens, with civic officials saying that so far 376 suggestions and objections were issued by the authorities.

Meanwhile, the increase in property tax rates took place following the hike in ready reckoner rates (RRR) imposed by the civic administration. The state government for the ongoing 2025-26 financial year has increased the RRR by an average 3.88% across the state. Meanwhile, Mumbai has recorded an increase in RRR by 3.39% – slightly below the state average.

Property tax is a cess charged by the BMC which comprises multiple components. While the larger aspect of this cess is determined by the ready reckoner rate (RRR) or the minimum property value determined by the government for revenue collection, the remaining valuation is determined by factors like age and condition of the property and sewerage charges among others. As a result, an increase in RRR leads to automatic increase in property tax.

Outstanding property tax due

A day after the hike in property tax bills, the BMC’s data shows that as many as 481 entities owe the civic body an outstanding tax worth Rs 14,320 crore inclusive of private as well as government properties. Of the total outstanding dues, Rs 1,090 crore is owed by the Mumbai Metropolitan Region Development Authority (MMRDA), out of which Rs 13.39 crore is owed by the Azad Nagar Metro station, while Rs 943 crore is owed by J Kumar infraprojects private limited – a private construction firm which is currently undertaking several infrastructure projects in Mumbai. Rs 103 crore is owed by the Mumbai Metro Rail Corporation Private Limited (MMRCL). The University of Mumbai owes Rs 84 crore in taxes while the Airport Authority of India (AAI) owes Rs 45 crore to the BMC.

Civic officials maintained that several of these private parties have been using the BMC’s plots for setting up casting yards for various infrastructure projects that have been taken up by the government authorities.

“We have sent letters and notices in each of these organisations and entities. In many cases, these matters are stuck in arbitration considering multiple stakeholders are involved. As a result the outstanding tax charges couldn’t be recovered. In some cases we attach the properties and confiscate them till the dues are paid,” an official said.