Mumbai BMC Collects ₹268.77 Crore in Property Tax from Slum Businesses
The Brihanmumbai Municipal Corporation (BMC) has successfully collected ₹268.77 crore in its first-ever property tax drive targeting commercial establishments within slum areas. This significant revenue generation initiative aims to integrate these businesses into the formal tax net.
Property TaxBmcSlum BusinessesRevenue GenerationMumbaiReal Estate MumbaiJul 17, 2025
The collection efforts yielded maximum recovery from the western suburbs, amounting to ₹253.84 crore, followed by the island city at ₹12.69 crore, and the eastern suburbs at ₹2.24 crore. While the overall property tax due from these establishments across Mumbai was ₹473.42 crore—exceeding the Brihanmumbai Municipal Corporation’s (BMC) projected collection of ₹350 crore for FY 2025-26—the actual collection registered a shortfall of ₹204.65 crore. Additionally, the civic body successfully collected penalties totaling ₹140.26 crore from these establishments for delayed payments. The municipal commissioner had previously stated that these commercial entities in slums benefit from civic amenities and thus should contribute through property tax, noting that approximately 20% of Mumbai’s 250,000 slum tenements are commercial operations.
Addressing concerns, a civic official clarified that levying tax on these commercial structures does not legalize them, citing Section 152(A) of the Mumbai Municipal Corporation Act, 1888. However, the initiative has drawn sharp criticism from political leaders, including a former civic corporator, who argued that the BMC should prioritize collecting dues from major defaulters rather than burdening Mumbaikars whose livelihoods depend on these small establishments. They highlighted that many slum residents are still recovering from the economic impact of the COVID-19 pandemic. Conversely, the civic official asserted that many taxed establishments serve as godowns for larger businesses or engage in ancillary activities, rather than being solely small, independent shops.
This pioneering tax collection reflects the BMC’s intent to enhance urban revenue and ensure equitable service provision. While facing criticism, the move highlights the complexity of integrating informal economies into formal tax structures. It underscores the ongoing challenge of balancing revenue needs with socio-economic sensitivities in a rapidly developing metropolis.
Frequently Asked Questions
What is the total amount collected in the first property tax drive from slum businesses in Mumbai?
The total amount collected in the first property tax drive from slum businesses in Mumbai is ₹268.77 crore.
How many commercial establishments were identified for taxation in slum areas?
Over 17,219 commercial establishments, including shops and workshops, were identified for taxation in slum areas.
What is the projected collection of property tax from slum businesses for FY 2025-26?
The projected collection of property tax from slum businesses for FY 2025-26 is ₹350 crore.
How much in penalties was collected from these establishments for delayed payments?
The civic body successfully collected penalties totaling ₹140.26 crore from these establishments for delayed payments.
What is the main argument of critics against this property tax initiative?
Critics argue that the BMC should prioritize collecting dues from major defaulters rather than burdening Mumbaikars whose livelihoods depend on these small establishments, especially those still recovering from the economic impact of the COVID-19 pandemic.
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