BMC plans to increase property tax rates by 14%

18 Jun 2021 CW Team

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

Technology

29 Jul 2026

AI-Enabled Workflows Lift Profitability and Productivity

Organisations modernising frontline workflows with artificial intelligence, automation and real-time data are reporting stronger financial performance, higher productivity and improved employee engagement, according to a global study by Zebra Technologies and Oxford Economics.The research covered 1,000 senior leaders across retail, manufacturing, transportation and logistics in the US, Mexico, the UK, Germany, India, Japan, Australia and New Zealand.In transportation and logistics, 54 per cent of companies that improved picking and packing operations reported faster operational performance, wh..

Real Estate

29 Jul 2026

India Leads Global AI Readiness but Implementation Lags

Indian companies lead global averages across all eight artificial intelligence readiness indicators tracked by JLL, but only 19 per cent have started making changes to their workplaces, according to the JLL 2026 Future of Work Survey.The study found that 77 per cent of Indian business leaders expect AI to change their office requirements, creating a 58-percentage-point gap between awareness and implementation. The survey covered more than 2,200 CEOs, CFOs and real estate leaders across 21 countries during the first quarter of 2026.Despite concerns over automation, 58 per cent of Indian leaders..

Equipment

29 Jul 2026

Three WOLFF Cranes Build Riyadh Cable-Stayed Bridges

Three WOLFF 180 B luffing jib cranes are supporting the construction of two cable-stayed bridges alongside the existing Wadi Laban Bridge in Riyadh, Saudi Arabia. The project is being developed for the Royal Commission for Riyadh City and executed by the ICRC joint venture comprising IC Ictas and Al Rashid Trading & Contracting Company.The cranes are handling lifting operations including formwork, reinforcement, concrete placement, work platforms, surveying equipment and other construction materials. Each crane is fitted with a 40 m jib, reaches a hook height of 157 m and offers a maximum ..