Mumbai's Slums Unveil Thriving Commerce, Boosting BMC's Property Tax Revenue

Mumbai: In a groundbreaking move, the BMC has uncovered a thriving commercial sector hidden within the narrow lanes and corrugated rooftops of Mumbai's slums. By identifying and levying taxes on nearly 8,000 commercial units, the civic body has managed to generate property tax bills worth about Rs 21 crore in just a few months.

So far, by October 4, notices have been sent to 7,500 of these units. The highest property tax bills have been generated from commercial units located in slums across the western suburbs, amounting to over Rs 12 crore, followed by the island city and the eastern suburbs. However, the eastern suburbs have the largest number of such commercial units, particularly in the L-ward and the S-ward, each having more than 1,000 units situated within slum areas.

Overall, the eastern suburbs account for over 50% of the city's 7,967 commercial units in slums, yet they generate the lowest property tax revenue. Civic officials state that the disparity arises due to differences in ready reckoner rates across various parts of the city. Property tax bills worth Rs 2.9 crore, the highest in the city, have been generated from the K East ward, followed by P North ward with Rs 2.04 crores and the K West wards with bills worth Rs 2.01 crores.

The L-ward, comprising Kurla, Saki Naka, Chandivali, and parts of Powai, has the highest number of such properties identified so far, followed by the S ward, comprising Bhandup and Kanjurmarg, and the F South ward. The civic body had earlier this year announced that it would bring commercial units under the property tax net and had initiated the assessment of commercial units in slums. According to the BMC, there are around 2.50 lakh slums in Mumbai.

A significant number of these slum areas (at least 20%, i.e., 50,000 slums) are being used for commercial purposes such as small and large industries, shops, godowns, hotels, etc. The BMC expects to generate a revenue of Rs 350 crore by assessing commercial properties in slums. Dhaval Shah, of the Lokhandwala Oshiwara Citizen's Association, said, 'These units are enjoying all benefits of the government, but they are not paying taxes applicable to commercial units, therefore these units should be brought under the property tax net.' The BMC had earlier clarified that payment of property tax does not mean that the structure has been legalized if it has been constructed illegally.