Mumbai News: BMC Nears 100 Per Cent Property Tax Collection For FY26, Achieves ₹6,910 Crore With Record 94.12 Pc Recovery

Mumbai, March 31: The BMC is confident to achieve 100% property tax collection for the financial year 2025–26, with 94.12% of its target already realised. According to civic officials, the BMC has collected Rs 6,910 crore, and penalty of Rs 274, against its target of Rs 7,341 crore as of the night of March 30, marking the highest-ever recovery at this stage of the fiscal year.

Deputy Municipal Commissioner (Assessment & Collection) Vishwas Shankarwar stated that the remaining 6% is expected to be collected by the night of March 31, as a large number of taxpayers typically make payments on the final day.

Higher target after last year’s record collection

In FY 2024–25, the BMC collected property tax of Rs 6,388 crores against Rs 6,200 crores, the highest since 2010. Officials said that the target was increased this year following that the property tax was restructured to 15.89% for the financial year 2025–26, based on the revised Ready Reckoner (RR) rates, which are used to determine property valuations for stamp duty and taxation purposes.

Deadline warning and extended payment hours

The civic body has warned that defaulters who fail to pay by March 31, 2026, will face punitive action. To facilitate the timely payment of property tax, the BMC has put in place special arrangements, with Citizen Facilitation Centres (CFCs) remaining open on public and weekly holidays—March 26, 28, and 29 from 8:00 am to 10:00 pm, and on March 30 and 31 from 8:00 am to 12:00 midnight—ensuring extended access and convenience for taxpayers.

Crackdown on defaulters intensifies

The BMC has also launched a crackdown on defaulters, taking attachment action against 6,922 properties with unpaid property tax totaling around Rs 6,089 crore for the financial year 2025–26. Following these stringent measures, 2,888 defaulters have cleared Rs 784.32 crore in dues.

Currently, 483 properties are under seizure and 210 are set for auction, with the civic body warning that anyone failing to clear dues by March 31 will face strict punitive action.

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Property tax remains key revenue source

For the BMC, property tax collection is the highest source of revenue since Octroi was abolished. The collection also faced persistent challenges in recent years, including exemptions granted to residential properties up to 500 sq ft, along with the absence of any tax revision since 2015–16, while legal complexities surrounding new methods of tax calculation further hampered revenue collection in the 2023–24 financial year.

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