Eye on polls, no hike in city property tax

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Mumbai: In a bid to give much-needed relief to Mumbaikars, already facing much hardship due to the lingering effects of the coronavirus induced lockdown, the Maharashtra Cabinet, in the run up to the BMC elections, has decided not to revise the property tax in the city for 2021-22. The BMC is expected to incur a loss of Rs 1,042 crore in the wake of the cabinet’s decision.

The BMC uses the capital value system (CVS) to calculate property tax, based on the market value of the property.

The decision was taken after Industry Minister Subhash Desai recently sent a letter to the Urban Development Department Minister Eknath Shinde with a plea not to revise the property tax during the Covid-19 crisis. A statement issued by the Chief Minister’s Office said, ”Already the pandemic has adversely impacted small business, educational institutions, development works, industries and industrial estates, jobs. In view of that, property owners, institutions and elected representatives had urged the BMC to waive the property tax or provide concession. Accordingly, the cabinet has approved the urban development department’s proposal not to revise the property tax for 2021-22.’’

Earlier, Mayor Kishori Pednekar had announced, “There will be no 14 per cent hike in property tax – a proposal pending with the standing committee for approval. It won’t happen, as the coronavirus pandemic crisis is not yet over, though there has been dip in cases in Mumbai.”

The BMC administration had proposed an increase in property tax of 14 per cent up to 2025, with the projection of additional mobilisation of Rs 1,000 crore during the current fiscal. The BMC had hiked property taxes in 2015 and another increase was due in 2020 but the pandemic outbreak stymied this move.

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Published on: Wednesday, October 27, 2021, 11:58 PM IST

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