The Brihanmumbai Municipal Corporation (BMC) has kicked-started the process to review the existing property tax slabs after three of keeping in abeyance. With this, it is most likely that Mumbaikars may witness an increase in the property tax this year.
As a first step, the civic body will appoint a chartered accountancy (CA) firm to study and advise on the revision. Officials said that the current tax might increase by 15% for 2023-25. However, the new rule will not impact houses up to 500 sqft.
15% tax increase proposal
In view of the possibility of municipal elections in 2022, Chief Minister Eknath Shinde had put a stop to the tax increase.
Sources stated that the civic authorities have now started the process of revising the rates in force from April 1, 2023, to March 31, 2025.
“According to the Act, the BMC can increase property tax by up to 40%, but we don’t want it to be a burden on taxpayers. The rates will therefore rise by 10-15% for the next two years,” said a senior civic official.
A tender was invited on Tuesday, September 5, to appoint a chartered accountant to study and advise the sectors in which tax can be increased based on ready reckoner (RR) rates. The RR rate is the minimum value of property set by the government. It helps calculate the true market value of immovable properties – be it land, residential, commercial and industrial.
On the other hand, additional municipal commissioner (projects) P Velrasu denied the development.
The BMC collected INR 5,638 crore as property tax for 2022-23, while it recovered INR 5,792 crore in 2021-22. The BMC has set a target to collect INR 6,000 crore in 2023-24.
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