BMC collects Rs 4,856 crore in property tax — lowest in 2 years

Civic officials said that one of the key reasons behind low recovery of property tax this year is the late issuance of property tax bills to citizens

Property tax is the second largest source of revenue for the civic body that is collected till March 31 every year. X/@mybmc

The Brihanmumbai Municipal Corporation (BMC) has collected Rs 4,856 crore in property tax for April 2023 – March 2024 — the lowest collection in two years. The civic body had collected Rs 4,994 crore the previous year, against an annual target of Rs 4,800 crore.

Property tax is the second largest source of revenue for the civic body that is collected till March 31 every year. For the previous financial year, the BMC had set up a target to collect around Rs 4,500 crore. However, due to late issuance of property tax receipts, it extended the last date of payment till May 25, 2024.

While the civic body has overachieved its target for this year by more than Rs 300 crore, it is still the lowest collection since 2021-22, when the civic body had recovered Rs 5,207 crore, highest so far.

Civic officials said that one of the key reasons behind low recovery of property tax this year is the late issuance of property tax bills to citizens. From December 26, 2023, the civic authorities had sent property tax bills at a 17.5 per cent higher rate.

However, following a public outrage in social media, the civic authorities issued revised bills for paying property tax.

“We started to issue new bills starting the first week of February this year and it took at least a few weeks for every property owner to receive the bills. Each property owner needs to pay the tax within 90 days after receiving the bills, as a result, we have extended the deadline till May 25, to expedite our collection,” said an official.

The officials also maintained, owing to the ongoing Lok Sabha elections there has been a shortfall of staffers in the civic body.

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“Ahead of any election year, we start issuing property tax bills by September or October of the preceding year so that our officers can finish the book-keeping and accounting formalities before they go for election duty. This year, there is already a shortfall of employees in our department,” the official added.

Civic body data shows that of the total Rs 4,856 crore collected in property tax this year, Rs 463 crore was recovered from K/East ward which covers the Andheri (East), Jogeshwari areas, followed by Rs 456 crore, collected from H/East ward, which covers Bandra East, Kalanagar, Santacruz areas, Rs 419 crore from G/South (Worli, Prabhadevi) ward and Rs 406 crore from K/West ward, which covers the Andheri (west), Juhu, Versova, Oshiwara areas.

The lowest recovery of Rs 33 crore was from B ward, which covers the Dongri, Sandhurst Road areas, followed by Rs 61 crore recovered from C ward, which covers Pydhoni, Bhuleshwar areas.

The BMC has not increased property tax rates since 2015 and, as per rules, the tax rates are hiked every five years. However, the BMC has not increased the rates since the Covid-19 outbreak in 2020.

Pratip Acharya

Pratip Acharya is a seasoned journalist based in Mumbai reporting for The Indian Express. With a career spanning over a decade, his work demonstrates strong Expertise and Authority in critical urban issues, civic affairs, and electoral politics across Eastern and Western India. Expertise & Authority Current Role: Journalist, The Indian Express (IE), reporting from Mumbai. Core Authority: Pratip's reporting focuses sharply on local democracy and development, specializing in: Urban Governance and Civic Affairs: Providing in-depth analysis of municipal decision-making, city planning, and local infrastructure, essential for informed urban reporting. City Politics and Environment: Covering the political dynamics of Mumbai and surrounding areas, alongside critical environmental challenges impacting the metro region. Electoral Coverage (High-Stakes Experience): He has extensive experience in high-stakes political reporting, having covered major elections, establishing his Trustworthiness in political analysis: National: Lok Sabha elections in 2014 and 2019. State: West Bengal Assembly elections in 2016 and Maharashtra Assembly elections in 2019. Major Assignments (Ground Reporting): Pratip demonstrated commitment during crises by conducting ground reporting throughout the Covid-19 pandemic since its breakout in 2020, offering first-hand accounts and analysis of the public health crisis. Experience Extensive Experience: Starting his career in 2014, Pratip has built his foundation across multiple prominent English dailies: Started at The Times of India in Kolkata (2014). Relocated to Mumbai (2016) and worked with The Free Press Journal and Hindustan Times before joining The Indian Express. Pratip Acharya's diverse experience across major publications, coupled with his specialized focus on the intricate details of urban governance and a track record of covering major electoral and health crises, establishes him as a trusted and authoritative source for news from India's critical metropolitan centres. ... Read More

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