Mumbai: The BMC has collected Rs.203 crores of property tax by tracking down big defaulters in the past 15 days. The civic body has missed the target to collect Rs 4,500 crores of revenue due to a delay in sending bills in fiscal 2023-24. However, the property owners who are yet to clear their dues are advised by BMC to pay taxes by May 25 to avoid penalty and legal action.
The BMC collected Rs 3,198 crores of property tax by March 31. Property tax is the second-highest revenue source of income for the municipal corporation. The revenue is contributed to making provision for infrastructure projects in the city.
So, the official of assessment and the collection department are tracing the top defaulters and trying to pursue them for clearing their dues. The defaulters have to face strict action, including sealing of their properties if they continue to default on pay.
List of Defaulters And Increased Collection
The BMC has released a list of more than 100 defaulters in the past 15 days. The list mainly comprises developers and housing societies. "Our continuous follow-ups with the defaulters has helped to collect Rs. 203 crores between April 1 to 15. We hope to achieve the target of last financial year by May 25," said a senior civic official. The BMC's total collection has reached Rs. 3,398 crores by April 15.
BMC's Revised Property Tax Strategy And Impact On Revenue Collection
The property tax bills were delayed due to legal complexities in tax calculation. Provisional bills issued with a 20% hike were withdrawn by the BMC in December 2023. So, the revenue from property tax for the current financial year was revised to Rs 4,500 crore from the initial estimate of Rs. 6,000 crore. However, the citizens got only a month to pay the property tax, which resulted in less revenue collection.
