The Maharashtra cabinet has approved the proposal to waive off the property tax for flats up to 500 square feet in Mumbai and its suburbs just weeks ahead of the civic polls.
According to the data revealed, nearly there are 1.61 million flats of up to 500 square feet in Mumbai and suburbs. Cumulatively, the waiver will save ₹462 crores for the citizens.
The decision of the Maharashtra Vikas Aghadi government’s cabinet also comes after the Opposition had raised the issue during the Winter Session held in December.
Earlier this month, Chief Minister Uddhav Thackeray had announced waiver of entire property tax for the smaller houses below the size of 45.45 sq mt or 500 sq ft.
The decision taken by the CM on January 1 received the state cabinet nod on Wednesday. The government has already issued a gazette notification last week. It will be applicable for the flats in BMC jurisdiction, said an official from the urban development department.
The government has fulfilled most of the promises made during 2017 BMC polls and this one is another important promise being fulfilled, said Thackeray while announcing the waiver.
As per accounts, the civic body collects ₹4,000-5,000 crore in property tax annually, of which ₹462 crores, including ₹45 crores of state government’s share, come from smaller flats.
The property tax has eight components, including general tax, education cess, water tax, sewerage tax, tree cess and water benefit tax.
Moreover, there are 4,00,000 housing societies in Mumbai. BMC individually issues property tax bills to flat owners.
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