BMC may hike property tax by 16%

While there has been no mention for new tax rates in this year’s budget document, Municipal Commissioner and BMC Administrator Iqbal Singh Chahal said that the chances of hiking property tax at the end of the financial year is being kept open-ended. “The decision to not increase property tax will be effective till March 31. After that the administration will take a decision on whether there is a need to increase the tax or not,” he said.

“In case BMC elections are concluded by then and the new body of corporators takes over, it will be their decision,” Chahal said. Sources in the BMC confirmed that the average rate of the hike will be around 16%.

Meanwhile, asked if the decision to not introduce any new taxes is political, considering BMC elections are likely to take place later this year, Chahal said, “The proposal to grant Mumbaikars relief from property tax was first sent by us last August, following which the state government approved the proposal. There is no political motive behind it, since we want to provide Mumbaikars financial relief as many are yet to recover from the losses suffered during the pandemic.”