Mumbai: The BMC has collected Rs. 373 crores of property tax by tracing big defaulters in the last 23 days. However, the civic body is yet to recover Rs. 3,569 crore 30% of property tax against the targeted amount of Rs. 4,500 crores within next one month.
The officials of the assessment and collection department could collect only Rs. 3,195 crores of property tax till March 31 for the financial year 2023-24.
Since the bills were sent in the month of February, the BMC allowed the citizens to pay their tax by May 25 without late fee of 2% interest per month. Meanwhile, the civic officials also focused on the big defaulters convincing them to clear their dues.
Property tax is the second-highest revenue source of income for the BMC. The BMC has seen a decline in property tax collection due to exemption for residential properties up to 500 sq.ft. and no hike in tax in the past five years.
In addition to this, the legal complexities of new methods of tax calculation badly affected the revenue collection in 2023-24. So, the initial target of property tax was revised from Rs. 6,000 crores to Rs.4,500 crores and the bills were sent on February 27 this year.
