Mumbai: The BMC has successfully collected 58% of the property tax target for the financial year 2024-25, totaling Rs. 5,243 crores out of the target of Rs. 6,200 crores. This amount includes Rs. 1,660 crores from the previous financial year, as the tax payment deadline was extended until May 25.
To assist citizens in avoiding penalties, the facilitation centers at the BMC headquarters and ward offices will remain open from 8 am to 10 pm on December 30, and from 8 am to 12 pm on December 31.
After facing challenges in meeting the property tax collection target for 2023-24, civic authorities took strong action against major defaulters, ultimately surpassing the initial target by collecting Rs. 4,856.38 crores, which is Rs. 300 crores above the target.
Despite this achievement, the property taxes for the current financial year have not been increased. To compensate for potential revenue losses, the civic authorities are focusing on improving revenue collection strategies to support ongoing and future initiatives. Several defaulters came forward following the action and cleared their outstanding dues. Property tax bills were distributed to citizens on October 1.
"We have collected Rs. 3,582 crores in property tax for the current financial year. We expect an increase in collections between January and March and can meet our target by March 2025," said a civic official.
Each year, the BMC collects property tax from over 9 lakh properties within its jurisdiction. However, the BMC's revenue collection has declined in recent years, largely due to the exemption of property tax for residential properties up to 500 sq ft and the lack of a tax revision since 2015-16.
Additionally, the legal complexities associated with new methods of tax calculation severely affected the revenue collection in 2023-24.
The initial property tax target was revised from Rs. 6,000 crores to Rs. 4,500 crores. With property tax bills being sent in February, the BMC could only collect Rs. 3,195 crores by March 31. As a result, the civic body extended the payment deadline by three months, allowing citizens to pay property tax without incurring a late fee.
