Mumbai: The BMC is preparing a comprehensive policy to collect water charges and sewerage charges from residential properties with a carpet area of less than 500 sq. ft. These charges were earlier included in property tax. However, the exemption of property tax for the last five years has resulted in crores of revenue loss. The committee formed to frame the policy is expected to submit their report in the next three months.
Property tax is considered as the second-highest revenue source of income for the municipal corporation. However, it has seen a decline in revenue collection in the last few years. For the fifth year running, the state govt has announced a property tax waiver for residential units up to 500 square feet in size. Also, being an election year, there will be no rise in tax (for the four consecutive years) in 2024-25. This has resulted in revenue loss in crores of rupees. To cover the loss, the civic body is mulling over several measures other than cracking the whip on big defaulters.
A committee that includes officials from the water and sewerage department is working on framing a policy for charging water and sewerage tax separately. "We are planning to recover water and sewerage charges separately from properties less than 500 sq ft, as their property tax has been waived off by the state government in 2021-22. Our only concern is to put the proposal for administrative approval before the code of conduct is on for upcoming state assembly elections," said a senior civic official.
Meanwhile, the civic body is also planning on levying a tax on commercial structures in slums. Currently, a ward-wise survey of commercial properties in slums is being carried out in all the 24 administrative wards. Till 2006-07, BMC would collect a service charge of Rs 100 from residential slum structures and Rs 250 from commercial per year.
