BMC to start sending property tax bills to residents of small houses

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The Brihanmumbai Municipal Corporation (BMC) will soon start sending property tax bills to the houses below 500 sq feet by waving of only general tax component which is only 10 to 30 per cent of the total tax. The BJP-Shiv Sena alliance promised to waive off property tax for the houses up to 500 sq feet houses in the manifesto and declared it in March.

The civic body delayed distribution of property tax amidst confusion over property tax component. Finally, the BMC issued a press note on Tuesday, clarifying that the only general tax component will be waived off and the bills will be distributed soon. There are several components in the property tax bill including general component tax, water tax, stormwater drainage tax, BMC education cess, State education cess, employment guarantee cess tree cess, road tax etc. The component of general tax varies from 10 to 30 per cent in the bill. After the declaration of waiving of property tax in March, Congress leader Milind Deora accused the Shiv Sena - BJP alliance of misleading Mumbaikars. But Ashish Shelar, then Mumbai chief of BJP assured to issue an ordinance to waive other components of the property tax.

Also read: High Court quashes BMC's capital value rules as basis for property tax

But after four months, the BMC doesn't get any clarification from the state. An officer from BMC on condition of anonymity told, "There isn't any communication from the state regarding waiving off all the components of the property tax." So finally the BMC is ready to send bills waiving only one component.

After the closure of Octroi, property tax has become the BMC's primary source of income. BMC collects around Rs. 5000 crore property tax in a year. The civic body collected Rs. 5132 crores in the financial year 2017-18 and have target Rs. 5206 crore in the current year i. e. 2018-19. There are around 15 lakh houses in the city which are under 500 sq ft. If BMC waives of full property tax for under 500 sq ft houses, the civic body will lose up to Rs. 350 crores.

Also read: Election 2019: Property tax waiver in Mumbai is "farce", says Milind Deora

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