The Real estate sector has welcomed Mumbai Mayor Kishori Pednekar’s statement that there will be no hike in property tax in Mumbai till Covid-19 situation continues. The developers believe that this will largely protect the interest of homebuyers especially in this pandemic.
Deepak Goradia, president, CREDAI MCHI said, "The move to not increase the property tax in Mumbai during such a difficult time bodes well for all stakeholders specially home owners. The second wave of the pandemic has not only disrupted construction activities but it has also hampered housing demand and this decision will help to neutralize, if not improve the sentiments of homebuyers."
The financial incentives offered by the government such as the stamp duty rebate have been extremely successful in stimulating the demand for real estate. A similar measure will augur well for the overall revival and growth of the industry and the economy, Goradia asserted.
Manju Yagnik, Vice Chairperson, Nahar Group and Senior Vice President, NAREDCO Maharashtra stated that once again the government of Maharashtra has come to the relief of the Mumbaikars. First it was a reduction in stamp duty and now its decision not to increase property tax is indeed very supportive. "We understand that the revision of property tax was due, however, considering the present crisis of pandemic and lockdown, postponing the increase in the property tax is a big relief to all the Mumbaikars," she added.
The Brihanmumbai Municipal Corporation (BMC) had reportedly proposed a hike in property tax. However, the Mayor had rejected the proposal saying that the people are already facing financial hardships due to the Covid-induced lockdowns. Pednekar was quoted as saying, "There will be no hike in Property tax in Mumbai till the Covid situation continues. We don't know how long will it take but till then we will not burden Mumbaikars by increasing the property tax." Besides Mayor, other party corporators also strongly objected to the property tax hike.
The BMC’s assessor and collector department tabled the proposal of increase in property tax based on ready reckoner rates as on April 1, 2021 before the Standing Committee for final approval. The property tax rate was proposed to go up to 14 per cent.
A revision in the assessment of property tax is done for a period of every five years and revision can also be done at the end of the five-year term. The fresh revision was scheduled for 2020-2025, but the BMC had reportedly decided against revising it last year in view of the coronavirus pandemic.