BMC plans to increase property tax rates by 14%
Real Estate

BMC plans to increase property tax rates by 14%

The Brihanmumbai Municipal Corporation (BMC) has planned to increase property tax rates in Mumbai by 14% based on the new Ready Reckoner (RR) rate.

But the proposal is anticipated to face strong opposition as municipal elections are just a few months away. On Wednesday, the civic standing committee delayed discussion on the proposal until next week.

The current property tax rates are estimated on the RR rates of 2015. But the BMC wants to revise the calculations based on the much higher current RR rates.

The revision in property tax rates last took place in 2015, said the BMC officials. As per the amendment in the Mumbai Municipal Corporation (MMC) Act, the revision in property tax rates is conducted once every five years, and this is normally done at the end of the fifth year. The current revision was scheduled for 2020-2025.

The BMC has decided not to increase tax rates, but officials stated that if the tax is estimated on the new RR rates, it will result in a rise in property tax for residents.

The BMC has also planned to allow restaurants and hotels to pay property tax as industrial units rather than commercial units. Officials stated it would help hotels and restaurants as property tax rates for industrial units are less than commercial units.

In a relief to lakhs of residents, the BMC had offered a total waiver in a rise in property tax rates last year. BMC officials stated if the rates were revised as scheduled in 2020, residents would have faced an increase of up to 40%. As per the BMC officials, there are 4.2 lakh, property owners, in Mumbai, out of which 1.4 lakh have houses that are less than 500 sq ft, and they are eligible for a property tax waiver.

An official explained that property tax is estimated on the capital value of a property based on RR rates. The RR rate is multiplied by several factors like floor rise, nature of construction, a year of construction, carpet area of the property, ward in which it is placed to determine the capital value of the property, among others.

Image Source


Also read: Maha property registrations & revenue drops by 60% due to Covid-19 curbs

Also read: How housing sales saw a boost among stamp duty reduction and how luxury deals took the leap

The Brihanmumbai Municipal Corporation (BMC) has planned to increase property tax rates in Mumbai by 14% based on the new Ready Reckoner (RR) rate. But the proposal is anticipated to face strong opposition as municipal elections are just a few months away. On Wednesday, the civic standing committee delayed discussion on the proposal until next week. The current property tax rates are estimated on the RR rates of 2015. But the BMC wants to revise the calculations based on the much higher current RR rates. The revision in property tax rates last took place in 2015, said the BMC officials. As per the amendment in the Mumbai Municipal Corporation (MMC) Act, the revision in property tax rates is conducted once every five years, and this is normally done at the end of the fifth year. The current revision was scheduled for 2020-2025. The BMC has decided not to increase tax rates, but officials stated that if the tax is estimated on the new RR rates, it will result in a rise in property tax for residents. The BMC has also planned to allow restaurants and hotels to pay property tax as industrial units rather than commercial units. Officials stated it would help hotels and restaurants as property tax rates for industrial units are less than commercial units. In a relief to lakhs of residents, the BMC had offered a total waiver in a rise in property tax rates last year. BMC officials stated if the rates were revised as scheduled in 2020, residents would have faced an increase of up to 40%. As per the BMC officials, there are 4.2 lakh, property owners, in Mumbai, out of which 1.4 lakh have houses that are less than 500 sq ft, and they are eligible for a property tax waiver. An official explained that property tax is estimated on the capital value of a property based on RR rates. The RR rate is multiplied by several factors like floor rise, nature of construction, a year of construction, carpet area of the property, ward in which it is placed to determine the capital value of the property, among others. Image SourceAlso read: Maha property registrations & revenue drops by 60% due to Covid-19 curbs Also read: How housing sales saw a boost among stamp duty reduction and how luxury deals took the leap

Next Story
Resources

Tata Power turns 5,000 kg plastic waste into green livelihood for women

Tata Power’s Anokha Dhaaga Smart Circularity programme has converted over 5,000 kilograms of single-use plastic waste into recycled fabric products like T-shirts, tote bags, and haversacks, generating over Rs 20 lakh in fair-trade earnings for women entrepreneurs. The initiative is active across six centres and aligns with the World Environment Day 2025 theme — End Plastic Pollution. The project began with a collection drive across Tata Power’s Trombay plant, housing colonies, and offices. In collaboration with ReCircle and sanitation workers ('Safai Saathis'), the waste was processed i..

Next Story
Infrastructure Transport

Adani Airports secures US$ 750 million from global lenders for growth

Adani Airports Holdings (AAHL), a subsidiary of Adani Enterprises and India’s largest private airport operator, has raised US$ 750 million via External Commercial Borrowings from a consortium of international banks. The financing was led by First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank. Of the total funds, US$ 400 million will be used to refinance existing debt, while the remainder will support growth capex across six airports—Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram—and expansion of AAHL’s non-aeronautical verticals including retai..

Next Story
Resources

CASE launches ‘Vijeta’ to skill youth in construction equipment sales

CASE Construction Equipment, a CNH brand, has launched ‘Vijeta’, a CSR initiative aimed at enhancing employability among underprivileged youth in the heavy equipment sector. The programme will equip participants with technical and practical skills required in construction equipment sales, particularly for backhoe loaders. It blends online and offline training, followed by a three-month hands-on industry stint at sales outlets, along with a monthly stipend. Puneet Vidyarthi, Head of Brand Marketing, CASE CE, APAC & India, said, “Vijeta bridges the skill gap in equipment sale..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?