The Brihanmumbai Municipal Corporation (BMC) standing committee, on Wednesday, questioned the administration's decision to seek property tax from the tenants of buildings or lands owned by it.
Ravi Raja, leader of opposition (LoP) in the BMC and senior Congress corporator, raised a point of order during the meeting and said that the administration has enforced property tax on tenants without taking the approval of the standing committee.
"Nearly 74,000 tenants reside in the BMC-owned buildings and lands. These tenants pay monthly rent to the administration. Then, why do they have to pay property tax? The administration owns these buildings and it shouldn't put the burden of taxes on these tenants," Raja said.
Raja said that a circular on this matter was first issued in 2017 after the completion of the administrative process. However, the matter wasn't taken up for discussion till now. Which is why he raised the order during Wednesday's meeting. He said that the tax has been enforced without following the norms and it should be revoked.
"According to the rules, the implementation of financial policies should be done after taking the approval of the standing committee and the BMC house. However, in this case, the matter was never brought forward for discussion and was implemented directly," Raja said.
Meanwhile, Standing Committee Chairman Yashwant Jadhav said that the circular should not be implemented without discussion. "BMC, on the one hand, is finding out ways to increase the financial burden of Mumbaikars. On the other hand, it is issuing rebates to the hospitality and real estate sectors. This is absolute injustice and the new tax needs to be revoked," said Vinod Mishra, group leader of Bharatiya Janata Party (BJP) in BMC.
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