In the run-up to the crucial BrihanMumbai Municipal Corporation (BMC) elections, the Maharashtra Cabinet chaired by Chief Minister Uddhav Thackeray on Wednesday approved the urban development department’s proposal to provide complete waiver in property tax on residential units up to 500 sq ft (46.45 sq mt) in the BMC's jurisdiction. It will be effective from January 1, 2022 as instructed by Thackeray while making the announcement on New Year's Day. The government decision will benefit nearly 16 lakh residential homes which house lakhs of families in the city. BMC is expected to lose a revenue of Rs 462 crore per year.
The urban development department had earlier proposed the waiver in property tax from April but it was rejected by Thackeray and the UDD Minister Eknath Shinde who insisted that it should be effective from January. The government will soon issue an ordinance proposing an amendment to the Mumbai Municipal Corporation Act 1888 to pave the way for the implementation of waiver in property tax for residential units up to 500 sq ft in BMC area.
However, BJP had demanded that the waiver should be made effective from 2017 when Shiv Sena had announced its BMC poll manifesto.
BMC in 2021-21 had estimated property tax collection of Rs 6,768 crore but could mobilize Rs 4,468 crore due to the covid pandemic and lockdown. In 2021-22, the BMC has projected the property tax collection of Rs 7,000 crore.
