Mumbaikars Question Property Tax Hike Amidst Poor Civic Services

Published: May 10, 2026 | Category: Real Estate Mumbai
Mumbaikars Question Property Tax Hike Amidst Poor Civic Services

The Brihanmumbai Municipal Corporation (BMC) has been trying hard to raise property taxes over the past four years in a bid to improve revenue. However, residents in towers feel deprived of basic services such as clean, encroachment-free roads, and footpaths. They blame the corporation for spending money on cosmetic changes.

The BMC attempted a 20 per cent hike in property tax this year after failing to obtain approval from the state government for the last four years. The corporation incurred significant losses due to its inability to implement the tax hike. Furthermore, this year's revenue suffered a setback owing to a 10-month delay in issuing bills. While the BMC administration has been trying to improve the revenue sources, with major projects like the coastal road, Goregaon Mulund Link Road, Versova-Dahisar coastal road, Dahisar-Bhayandar link road in the pipeline, citizens are of the opinion that the corporation doesn't judiciously utilise their hard-earned money.

“We acknowledge the significance of paying taxes, but despite timely payments, taxpayers see minimal to no returns. Civic infrastructure for the visually impaired and differently-abled is lacking. Most welfare schemes cater only to the poor, neglecting healthcare for the middle class and retirement homes. The burden of tax falls heavily on the middle-class taxpayer,” said Lillian Pais of the Mumbai Citizens Forum. Another citizen questioned the BMC administration's authority to make financial decisions without an elected body. “The hike is not justified. As the wealthiest corporation, funds should be used wisely.

First and foremost, hold corporation elections. Corporators maintain direct connections with the people and understand precisely where funds are needed,” said Marian Dsouza, chairperson of the Mount Mary ALM.

Despite paying approximately one crore in property taxes for an entire complex, citizens encounter subpar services once they step out of the society gate. “Despite paying hefty property taxes, we receive inadequate services from the corporation - garbage dumps in public areas, illegal hoardings obstructing footpaths and signals, air pollutants released without adhering to norms, and hawkers encroaching on pedestrian paths and pothole-ridden roads. Despite these issues, the BMC has the audacity to increase property tax by 15-20 per cent. Why should residents pay property taxes when they're not receiving services?” asked Mandeep Singh Makkar, founder of the Chandivali Citizens Welfare Association (CCWA).

The city grapples with poor service issues in both south Bombay and the suburbs. Citizens believe that rather than spending crores on cosmetic projects, the BMC should concentrate on providing fundamental infrastructure. “We don't believe the BMC needs to raise property taxes to improve infrastructure. Frivolous spending on repeatedly renovating footpaths and sewage lines to consume funds must cease.

There should be a cap on beautification project expenses. A strict implementation of the Defect Liability Period, as with roads, should extend to other expense/project categories. Once completed, projects should guarantee a minimum lifespan of at least 10 years, preventing the misuse of taxpayer's funds,” said Dhaval Shah, founder of the Andheri Lokhandwala Oshiwara Citizens Association.

The delay in issuing bills this year by the BMC has further exacerbated the situation, adding to the frustration of the citizens. The corporation's inability to manage its finances and provide basic amenities is a major concern for the residents of Mumbai. As the BMC continues to push for a property tax hike, it is clear that the onus is on the corporation to address these issues and provide the services that the citizens are paying for.

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Frequently Asked Questions

1. Why is the BMC trying to hike property taxes?
The BMC is attempting to hike property taxes to improve its revenue and fund various infrastructure and development projects in the city.
2. What are the main issues faced by Mumbaikars regarding civic services?
Mumbaikars face issues such as poor road conditions, lack of footpaths, garbage accumulation, illegal hoardings, and inadequate healthcare facilities for the middle class.
3. How has the BMC's revenue been affected this year?
The BMC's revenue has been affected this year due to a 10-month delay in issuing property tax bills and the inability to implement a 20% tax hike for the past four years.
4. What do citizens suggest to improve the situation?
Citizens suggest holding corporation elections to ensure better representation and accountability, capping expenses on beautification projects, and strictly implementing the Defect Liability Period for infrastructure projects.
5. What is the Defect Liability Period, and why is it important?
The Defect Liability Period is a period during which the contractor is responsible for any defects in the project. It is important to ensure that infrastructure projects are of high quality and last for a reasonable duration, preventing the misuse of taxpayer funds.