BMC House Proposes Property Tax Relief for 700sqft Homes in Mumbai
Mumbai: The BMC House has taken a significant step towards property tax relief for middle-class families. Last Friday, the civic House passed a notice of motion (NoM) proposing to increase the exemption limit for property taxes for residential units from 500sqft to 700sqft. This move is aimed at easing the financial burden on families who have been rehabilitated through slum and chawl redevelopment schemes.
BMC officials clarified that while the NoM is not binding on the administration, it will be sent to the civic administration for deliberation. Following this, the proposal may be approved, modified, referred to committees, or merely noted. Currently, around 3.6 lakh properties in Mumbai are exempt from property tax because their carpet area is under 500sqft. This policy has been in place since 2022, following a state government directive. Property tax is a major revenue source for the civic body, with the BMC administration collecting Rs 6,198 crore in property taxes for the 2024-25 fiscal year.
The NoM was moved by Shiv Sena (UBT) corporator Yashodhar Phanse, who highlighted the increasing difficulty middle-class families face in bearing property tax and maintenance costs. While these beneficiaries receive homes free of cost, recurring expenses such as society maintenance, repairs, healthcare, and education have made living in Mumbai unaffordable. This financial strain has forced many to sell their flats and move out of the city.
Phanse emphasized that increasing the exemption limit is necessary to ensure that 'original Mumbaikars' can continue living in the city. The proposal aligns with one of the key assurances made in the joint manifesto of Sena (UBT) and MNS ahead of the BMC elections. However, BJP's former MP Manoj Kotak, who had moved a similar proposal during his tenure as Mulund corporator in 2018, questioned the redundancy of the NoM. Kotak pointed out that his proposal is still pending with the state government and argued that if Sena (UBT) were serious about the issue, they should have secured approval when they headed the state government.
The proposal, if approved, could significantly benefit a large number of middle-income families in Mumbai, making the city more affordable and livable. The civic administration will now deliberate on the NoM and decide on the next steps.
