Mumbai: Ahead of BMC polls, Mayor Kishori Pednekar says no 14% hike in property tax
Mumbai: Ahead of BMC polls, Mayor Kishori Pednekar says no 14% hike in property tax

A citizen’s group on Thursday slammed the BMC’s proposal to hike property tax rates in the city.

The association, Watchdog Foundation, has written to the civic chief, urging the civic body to not revise the tax rates.

“We are aware that the corporation has collected only Rs 1,200 crore of its target of Rs 5,000 crores. However the deficit amount of taxes should be collected from defaulters and not by penalising the honest tax payers, who are regularly paying their taxes,” the association stated in the letter.

Trustee of the association Godfrey Pimenta said that the BMC will be putting a burden on the shoulder of the common man by hiking the tax rates, especially at a time when so many are facing financial crisis.

“Mumbaikars pay the highest amount of property tax in the country. In other countries, the rate of property tax is around 1% of the capital value; while in Mumbai it goes up to 5%,” Pimenta told FPJ.

Furthermore, he the civic body has a fixed deposit worth Rs 80,000 crore and annually it generates interest worth Rs 16,000 crore.

“Even after earning so much money and being the richest civic body in Asia, the BMC has chosen to burden the honest tax payers,” he said.

In the mail, the association also mentioned that the BMC had made a list of 50 defaulters who alone owes Rs 2,000 crores to the BMC. The association has named large corporate houses like HDIL, Seven Hills, Taj Lands End and Mumbai Cricket Association in the list.

"There is no transparency in the way how BMC operates. It has spend so much money on building Hindmata underground water-holding tanks, yet the city is getting flooded. Where is the accountability over this issue," said Pimenta.

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