Civic panel divided on property tax system,proposed water tariff hike

However,Congress corporator Praveen Chheda said the rebate was too small to be an incentive. “The rebate should be at least five per cent to enourage citizens to pay tax before time,” he said.

Members have asked the BMC administration to make a presentation explaining the proposals. The presentation is likely to be made in the next meeting scheduled later this week.

Standing committee chairman Rahul Shewale said a decision on both the proposals would be taken after the administration makes a presentation. “This will help members understand the proposal better. The present proposed hike in water tax is not acceptable and amendments need to be made.”

As per an ordinance by the state,the BMC has to switch its property tax calculation structure from the existing rateable value system,which is based on rent,to a capital value system based on the market price of the property. The civic administration wants to switch to this system since 2010 but is awaiting the nod of the standing committee. BMC has already missed the deadline for implementation of the capital value-based property tax regime.

The proposal to increase water charges by 14 to 57 per cent was also put on hold by the members of the standing committee. “There has been no consensus on the water tariff as yet. We are as it is opposed to raising water charges arbitrarily. The poor are being taxed more,” said Samajwadi Party corporator Raees Shaikh.