Mumbai: The BrihanMumbai Municipal Corporation has collected Rs3,562 crore by way of property tax till December 31, despite giving exemption to residential properties upto 500 sq ft. The civic body has achieved 50 per cent of its target with three months to spare in this financial year. This is also the highest ever collection during this period, according to a civic official.
Property tax is the second biggest source of revenue for the corporation. Last year the BMC had collected Rs5,792 crore, while the estimate was of Rs5,400 crore. In 2022-23, the BMC has set its target at Rs7,000 crore. However, the state government’s decision to exempt residential properties up to 500 sq ft from property tax, has resulted in a loss of Rs462 crore.
Every year, collection of property tax picks up pace after November. The efforts taken by the assessor and collection department has increased the revenue from the last two years. The BMC had expedited the collection process which had led to higher recovery this year, the sources said. The civic body had collected around Rs3,450 crores by December 31, 2021.
“For the first time we have started sending property tax bills to individual flat owners instead of housing societies. So it has been easier for the owners to pay the bill as per their convenience. Property owners who fail to pay the tax by December 31, are levied 2 per cent penalty from January 1. We undertook an awareness campaign among citizens which resulted in most of them clearing their dues by December 31. Also, civic officials went to the biggest defaulters such as builders and convinced them to pay tax to avoid action,” said a civic official from the assessor and collector department. Joint Commissioner Sunil Dhamne said, “This year we have set a target for our officials also and took commitment from them about how much they can recover. Our officials made individual calls and convinced the big defaulters to pay up. I also take reviews of the collection every 15 days.”
Property owners get three months from the time of receiving the bills to pay the tax. After 90 days, BMC sends reminders and notices to the defaulters. There is a revision in property tax after every five years which was supposed to be done in 2020, but the hike was postponed for two years during covid pandemic. This year the property tax rates were supposed to be revised by 18% which means that the revenue could have increased by Rs1,080 crore.
Property tax earned last fiscal - Rs5,792 crore
Expected tax in 2022 – 23 - Rs7,000 crore
Revision in tax - every five years. Postponed for the last three consecutive years.
Tax waived for properties up to 500 sq.ft. - revenue loss of Rs462 crores.
Benefit to 16.14 lakh residential units.
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