The Maharashtra government recently decided to increase the Ready Reckoner Rate (RRR). This decision was taken by the government before the local body elections. The increase in the Ready Reckoner Rate will also affect property tax.
The Ready Reckoner rate will increase property tax in all municipal areas of Maharashtra. This tax is likely to increase by 8 to 20 percent.
Talking about Mumbai, property tax has not been increased in the last 10 years. However, with the change in the Ready Reckoner rate, property tax will now automatically increase.
According to Indian Express, Brihanmumbai Municipal Corporation (BMC) Commissioner Bhushan Gagrani said that no changes have been made to the current property tax rates of Mumbai so far. Property tax is a surcharge levied by the Mumbai Municipal Corporation. An important part behind determining these rates is the Ready Reckoner rates. This rate is the minimum property value of a property determined by the state government.
Gagrani said that the civic body has not increased any rates. Property tax in Mumbai is directly linked to the ready reckoner rates.
There is a possibility that the property tax will also increase due to the increase in the ready reckoner rates. The details of how much tax is payable by whom after this tax increase will be known only from the bill for the current financial year.