Mumbai’s property taxpayers can once again celebrate the Maharashtra cabinet’s decision to keep the property tax at the current level. An official statement claims that this decision will relieve residents of Mumbai of an extra Rs 736 crore of burden. Are you a Mumbai property owner as well? Then, read this article to learn more about the latest changes to Mumbai’s property tax.
The forthcoming increase in Mumbai’s property tax has also been put on hold by the Brihanmumbai Municipal Corporation (BMC) for the current fiscal year. By 2020, there will likely have changed since the last one in 2015. The business has held back the hike for two years to give the proprietors a break during the pandemic. It is fascinating that the Maharashtra cabinet decided to keep Mumbai’s property tax laws unchanged this year. The ruling relieved Mumbai property owners by allowing them to postpone paying property taxes for an extra year. Let’s take a look at this recent update in detail.
Why does Mumbai have a deferred property tax?
Several MLAs asked Chief Minister Eknath Shinde to postpone the hike for an additional year, citing the burdensome additional 16-20% property tax that would fall on homeowners. Ahead of the municipal election, the choice has been dubbed a scam.
When would BMC give up on it?
Refusing to raise the property tax in Mumbai for the current year is expected to cost BMC Rs 1,080 crore in revenue. According to officials, the pandemic has affected property tax revenue over the last two years.
Because those who live in homes under 500 square feet are exempt from paying property taxes, the BMC is also giving up Rs 462 crore. This concession took effect on January 1, 2022. Owners of residential flats totaling about 16.14 lakh have benefited from it.
Which other decisions concern property taxes?
Until September 2022, the Panvel Municipal Corporation (PMC) will reimburse 50%of unpaid property taxes. Helping those who were unable to benefit from the prior 75% rebate is the aim of this decision.
In the final week of July, approximately Rs 10 crore in property tax was collected, according to senior civic officials. In the current fiscal year, the collection total is Rs 62 crore.
Mumbai property taxes: current information (February 2024)
The Maharashtra Cabinet decided not to raise the Mumbai property tax during its most recent meeting on February 5, 2024. According to the proposal of the Urban Development Department, the cabinet presided over by Chief Minister Eknath Shinde decided to maintain the current property tax system. Refusing to raise property taxes in Mumbai would spare the city’s citizens an extra Rs 736 crore in debt.
In 2015, the Brihamantri Municipal Corporation (BMC) kept the property taxes at the same level. Mumbai’s Brihanmumbai Municipal Corporation (BMC) kept the property taxes at the same level. Mumbai’s Brihanmumbai Municipal Corporation reviews property tax increases every five years. In anticipation of civic polls in 2022, the cabinet earlier decided not to hike property taxes because of the COVID outbreak.
In Mumbai, BMC collected property taxes totaling Rs 5,792 crore in the fiscal year 2022-2023. By choosing not to raise property taxes, the government has been demonstrating to owners of real estate inside the city limits how hard it works for them. These choices will lessen the financial load on property owners and encourage improved money management. Furthermore, Mumbai’s overall property value will continue to be appealing and will eventually rise with stable property taxes.