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
Infrastructure Transport

Railways To Add 2,000 Trains, End Waiting Lists

Indian Railways will introduce about 2,000 extra trains a day over the next four years, lifting the daily total to nearly 13,000 services and aiming to provide every traveller with a confirmed berth. According to a senior Railway Ministry official, the enlarged timetable should raise annual passenger capacity from roughly 8 billion to 10 billion and wipe out the 50 million-strong waiting-list that recurs each year.The plan calls for 450 Vande Bharat sets, 200 push-pull formations and a mix of new Mail and Express services. Capacity freed by the Dedicated Freight Corridor, plus continuous track..

Next Story
Infrastructure Transport

Six Ahmedabad Trains Rerouted For 70-Day Station Upgrade

Western Railway will divert six long-distance services from Ahmedabad’s Kalupur station for 70 days while the hub undergoes major redevelopment. From 5 July until 12 September 2025, the following changes will apply:The 12932 Ahmedabad–Mumbai Central AC Double Decker will start from Maninagar at 05.50, the 12655 Ahmedabad–Chennai Navjivan Express will leave Asarva at 21.05, and the 19034 Ahmedabad–Valsad Gujarat Queen will depart Maninagar at 18.20.Arriving trains will also finish elsewhere: the Mumbai Central–Ahmedabad AC Double Decker will terminate at Vatva at 21.20, the Chennai–..

Next Story
Infrastructure Energy

LTTS Wins USD 50 Million Five-Year Sustainability Deal

L&T Technology Services (LTTS), the listed engineering arm of Larsen & Toubro, has secured a five-year framework agreement worth more than USD 50 million to serve as the exclusive global engineering partner for the Sustainability division of one of the world’s leading energy companies.Under the pact LTTS will deliver enterprise data and digital services, encompassing advanced power-management solutions, next-generation cooling, and scalable rack architectures designed to optimise the client’s worldwide network of AI-enabled, low-carbon “energy factories”.Chief Executive and Man..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?