Mumbai: BMC overachieves property tax target, all set to collect Rs 5,708 cr today

The BMC’s property tax department is all set to overachieve its collection target in the next two days. It had collected Rs 5,108 crore till Tuesday afternoon, and is expected to further collect Rs 600 crore in the next two days. With the initial target of Rs 6,000 crore, which was revised to Rs 4,800 crore after taking into account the pandemic situation, it’s a feat of sorts for the BMC.

After implementation of the Goods and Services Tax (GST), the BMC had to stop the collection of Octroi duty and all check nakas were shut down. Thereafter, the BMC emphasised on collection of property tax, with the state government only recently deciding to waive tax for houses with an area equal to or less than 500 sqft.

Joint Municipal commissioner Sunil Dhamane said, “For 2021-22, the civic body had decided to collect Rs 6,000 crore, which was later revised to Rs 4800 crore owing to Covid-19.” He said last year, the BMC had collected Rs 5,135 crore as property tax, with Rs 41 crore in penalties. The total collection last year, Dhamane said, was the highest in a decade. “This year, we may even cross the last year’s collection,” he said.

A BMC officer said that the civic body also auctions properties of defaulters, but that procedure is usually initiated in May or June.