After a record property tax collection in 2021-22, the BMC has now recovered Rs 173 crore from April 1 to May 5. During this period last year, the BMC could only add 10 per cent to its kitty.
Property tax is one of the primary sources of revenue for the civic body. As per the Mumbai Municipal Corporation Act, property tax in the city is revised every five years. It was earlier revised in 2015. However, it delayed a revision in 2020 owing to the pandemic. Despite the Covid-19 situation and a tax waiver on residential structures of up to 500 sq ft, the BMC collected Rs ,5792 crore as property tax in 2021-22. Compared to the previous financial year, the collection rose by 13 per cent, which is the highest in its history, the civic body claimed.
Tax recovery has dropped ever since the pandemic struck. The assessment and collection (A&C) department recovered Rs 3,735 in 2019-20. Other than the annual recovery, the BMC’s pending property tax dues reached Rs 19,000 crore. In light of this, the BMC started taking action against defaulters and could collect Rs 5,094 crore in 2020-21. “A surge in recovery led to systemic aggressive action against defaulters, which also expedited the recovery process,” said the senior civic official.
Deputy municipal commissioner Sunil Dhamne said, “In the last one month, the BMC has collected Rs 173 crore in property tax, which is more compared to the last financial year. We have also hastened the process of recovery and the SOP has been framed for auction of properties of defaulters.”
