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Friday, July 30, 2021

BMC Standing Committee unanimously rejects proposal to hike property tax

The BMC administration had proposed to hike property tax based on Ready Reckoner (RR) rates of land as on April 1, 2021.

By: Express News Service | Mumbai |
June 24, 2021 12:50:44 am
On Wednesday, following an uproar, Standing Committee Chairman Yashwant Jadhav had directed that the circular be stayed.

The BMC’s proposal of hiking property tax was unanimously rejected by its Standing Committee on Wednesday. The BMC administration had proposed to hike property tax based on Ready Reckoner (RR) rates of land as on April 1, 2021.

Standing Committee Chairman Yashwant Jadhav said: “We have recorded the proposal and sent it back to the administration. There will be no property tax hike in Mumbai till the pandemic continues.”

Ahead of BMC polls early next year, all parties have opposed the move. Following this, Mayor Kishori Pednekar had assured that the proposal will not be passed by the Standing Committee.

Last week, the Standing Committee had held back the proposal and sought time to study it. Opposition leader in the BMC, Congress’ Ravi Raja, had then red-flagged the proposal.

The proposal from BMC’s assessor and collector department would have been in force from April 1, 2021 to March 31, 2025. The hike was based on the latest RR rates set by the government, which could increase the property tax by 14 per cent in Mumbai.

RR rate helps calculate true market value of immovable property. It is one of the factors used to calculate property tax. The last time property tax rates were revised was in 2015 for five years. As per the amendment in the Mumbai Municipal Corporation Act, revision in the assessment of property tax can be done every five years. The revision was scheduled for 2020-2025 but the BMC decided against it last year in view of the pandemic. According to the Act, with revision, the BMC can hike property tax up to 40%.

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