Mumbai: BMC Increases House Tax by a Huge Margin of 40 Percent

The Brihanmumbai Municipal Corporation (BMC) has declared a property tax increase for Mumbai residents, ranging from 15% to 40%, with exemptions for homes under 500 square feet. The revised rates, based on ready reckoner values, have already been dispatched to property owners.

This decision follows controversy after the Supreme Court recently invalidated three rules of the BMC's capital value-based tax system. The BMC now grapples with the task of adjusting payments in accordance with the court's ruling.

Discussions on property tax hikes in the city persisted throughout the year, with uncertainty heightened due to upcoming elections. Despite this, the BMC initiated the process of sending revised bills on December 26.

The Municipal Act mandates a five-year property tax review, with the last increase occurring in 2015. The scheduled 2020 hike was postponed due to the COVID-19 pandemic, but the state government approved an adjustment based on April 2021's revised ready reckoner rates, potentially resulting in a 14% increase.

Municipal Commissioner Iqbal Singh Chahal clarified that the current bills display both payable and chargeable amounts, leading to confusion. Accurate bills will be reissued, although there is no official confirmation regarding the withdrawal of existing bills, which lack details on payable and chargeable amounts. This decision has sparked debates about potential political influence, reminiscent of the swift withdrawal of a water tariff hike in November.

South Mumbai, characterized by higher capital values, is expected to bear the brunt of the increase. While officials assure a 40% cap, the specific impact on different areas remains unclear.