Thane TMC Hikes Property Tax By Up To 20%, Withdraws Proposed TMT Bus Fare Increase

Thane: In a significant civic development, the Thane Municipal Corporation (TMC) on Monday approved proposals to hike property taxes and revise property transfer fees during its general body meeting. Passed without prior discussion, the dual tax hike is set to deal a double blow to Thanekars' pockets. However, in a major relief for daily commuters, the administration withdrew its proposal to increase bus fares for the Thane Municipal Transport (TMT).

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Under the newly approved property tax structure—revised for the first time since 2018–19—residential property tax will see a 12% increase, while commercial (non-residential) property tax will rise by 20%. The municipal civic body expects to generate an additional annual revenue of ₹104.67 crore from this tax hike to fund expanding urban infrastructure and civic amenities.

Justifying the revenue measure, Thane Municipal Commissioner Saurabh Rao stated, "Rapid urbanization and the growing demand for improved civic services require enhanced municipal funds. Property taxes have not been revised in years, making this adjustment necessary to maintain infrastructure standards."

However, the decision drew swift backlash across political lines. Slamming the move, Nationalist Congress Party (SP) District President Manoj Pradhan remarked, "The corporation is bound to provide basic civic services to residents in return for taxes. But in Thane, despite failing to provide even standard infrastructure like roads and drainage, the TMC is now unjustifiably burdening citizens with a steep tax hike."

Furthermore, property transfer fees—charged when updating tax records following a sale, gift deed, or inheritance—have been restructured. Instead of the previous flat rate ranging from ₹1,000 to ₹10,000 based on property area, a fee of 0.5% of the government-approved market value will now be levied. For instance, a property worth ₹1 crore will now attract a transfer fee of ₹50,000. Fees for unauthorized properties and inheritance transfers have also been scaled up.

Relief for TMT Bus Commuters

In contrast, TMT commuters caught a temporary break after the administration scrapped its proposed fare hike. The initial plan—aiming for an additional annual revenue of ₹33.48 crore by increasing regular bus fares by ₹3 to ₹25 and AC bus fares by ₹3 to ₹7—was withdrawn to align with the state government's policy of establishing uniform transport fares across the Mumbai Metropolitan Region (MMR).

Key Highlights

Residential Property Tax: Increased by 12%

Non-Residential Property Tax: Increased by 20%

Expected Tax Revenue: ₹104.67 crore per annum

Property Transfer Fee: Revised to 0.5% of market value

TMT Bus Fare Hike: Proposal withdrawn (Fares remain unchanged)

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