No Property Tax Hike for Mumbaikars in 2024-25 as BMC Maintains Current Rates
Mumbai property owners will not face a tax hike this year as the BMC maintains current rates. This decision reflects the civic body's sensitivity to the financial burden on citizens, especially considering the economic impact of the pandemic.
Mumbai Property TaxBmcProperty Tax RatesMunicipal GovernancePandemic ImpactReal Estate MumbaiAug 11, 2024
Every year, BMC collects property tax from over 900,000 properties under its jurisdiction, with the authority to revise rates every five years. The last revision took place in 2015-16. Authorities rejected proposed increases for 2020-21 and 2022 due to the pandemic and other factors.
If officials propose a property tax hike next year, it will follow a decade without any increase. Without elected corporators, the BMC must seek state government approval for any hike. A BMC official noted that they currently levy property tax based on the Stamp Duty Ready Reckoner rates, which establish the property's base value. These rates have remained unchanged since 2015-16.
The civic body believes that proposing a hike this year and again next year, per the five-year revision schedule, could burden citizens for two consecutive years. For the BMC, property tax remains the biggest source of revenue. Until 2017, the BMC relied on octroi as its highest source of revenue before replacing it with the Goods and Services Tax (GST).
In the financial year 2023-24, the BMC set a target of INR 4,500 crore from property tax but collected INR 4,856 crore. Initially, the BMC budget for 2023-24 announced a collection target of INR 6,000 crore, which was later revised to INR 4,500 crore.
In summary, the BMC's decision to maintain the current property tax rate reflects its sensitivity to the financial burden on citizens, especially considering the economic impact of the pandemic. The history of rate revisions, pandemic disruptions, and the use of consistent base values for tax assessments create a predictable and stable environment for Mumbai property owners. The BMC's ability to surpass its collection target highlights its financial discipline and strategic foresight in municipal governance.
Information
The Brihanmumbai Municipal Corporation (BMC) is the civic body responsible for governing the city of Mumbai. The BMC is responsible for providing various services to citizens, including property tax collection, infrastructure development, and public health services.
The Brihanmumbai Municipal Corporation (BMC) is the primary governing body of the city of Mumbai, responsible for providing various civic services to its citizens.
Frequently Asked Questions
Why has the BMC decided not to revise property tax rates for 2024-25?
The BMC has decided not to revise property tax rates for 2024-25 to avoid burdening citizens with a tax hike, especially considering the economic impact of the pandemic.
How does the BMC calculate property tax?
The BMC calculates property tax based on the Stamp Duty Ready Reckoner rates, which establish the property's base value.
What is the BMC's biggest source of revenue?
Property tax is the BMC's biggest source of revenue.
How much did the BMC collect in property tax in 2023-24?
The BMC collected INR 4,856 crore in property tax in 2023-24, surpassing its target of INR 4,500 crore.
Why did the BMC reject proposed property tax hikes in 2020-21 and 2022?
The BMC rejected proposed property tax hikes in 2020-21 and 2022 due to the pandemic and other factors.
Related News Articles
Transforming India's Real Estate Landscape: RERA's Success Stories and Innovations
RERA has brought transparency and accountability to India's real estate sector, transforming the home-buying experience. Discover the successful implementations and innovations that are shaping the industry's future.
Revolutionizing Home Decor with Artificial Intelligence
Discover how AI is transforming the world of home decor, from personalized design recommendations to virtual staging and space planning.
Mumbai Real Estate Boom: Mahindra Lifespaces Signs Major Joint Development Agreement
Mahindra Lifespaces, a prominent real estate developer, has announced a significant joint development agreement for a 37-acre plot in Mumbai's Bhandup area. The project has a development potential of 3.6 million square feet, marking a significant step in
Mumbai's Property Market Reaches 13-Year High in 2024 with Over 1.41 Lakh Registrations
Despite modest growth in property registrations, Mumbai’s real estate market has set a new 13-year high, generating Rs 12,161 crore in revenue. The demand for premium and spacious homes continues to rise, driven by improved infrastructure and economic gro
Prime Property for $1 Million: How Much Can You Really Buy in Mumbai?
A recent report by property consulting firm Knight Frank reveals that $1 million can buy only 99 square meters of prime residential real estate in Mumbai. This stark figure highlights the premium prices of real estate in one of India's most populous citie
Exploring the Highlights of CREDAI Rajasthan Real Estate Expo-2025
Get ready for the biggest real estate event in Rajasthan as CREDAI presents the Real Estate Expo-2025 from April 17th. Discover the latest trends, projects, and investment opportunities in the real estate sector.