Mumbai: The Brihanmumbai Municipal Corporation (BMC) clarified that property tax rates have not been increased; however, residents experienced higher bills due to changes in the ready reckoner rates for the 2025-26 financial year. Ready reckoner rates, which are minimum property values set by the government for taxation in Maharashtra, were revised on March 31, 2025, after a decade.
"The current revision comes after a 10-year gap. There is a legal provision that these payments will be automatically revised due to the changes made in the ready reckoner for the financial year 2025-26," the release by BMC had stated informing about Ready reckoner rates.
The BMC noted that the average increase in property tax bills of 15.89% stemmed from the requirement for capital value revisions every five years, with the last update deferred in 2020 due to the pandemic.
Additionally, the BMC has paused the implementation of solid waste management fees following concerns from state leaders about the additional burden on citizens. Flats below 500 square feet are already exempt from property tax. BMC collects taxes from over nine lakh property owners in Mumbai and its suburbs, with elections pending for about three years.
Political objections have arisen from various parties, with BJP leader Ravi Raja highlighting the discrepancy between diligent taxpayers and large defaulters owing approximately ₹11,000 crore. He urged for action against chronic defaulters before imposing increases on citizens.
The 5% hike in ready reckoner rates, which affects property prices and increases the financial burden on buyers, was initially proposed for public consultation but was eliminated to streamline the process. This adjustment is expected to enhance government revenue from property-related fees this financial year.
