14 Aug 2022
by Web Desk | Published: 12 Jan 2022
The Maharashtra Cabinet, headed by Chief Minister Uddhav Thackeray, authorized the urban development department's proposition on Wednesday to have a complete exemption in property tax on residential units up to 500 sq ft, in the BMC's authority, ahead of the important Brihanmumbai Municipal Corporation (BMC) elections. It will take effect on January 1, 2022, according to Thackeray's New Year's Day announcement. The government's decision will benefit nearly 16 lakhs residential homes in the city, which house thousands of families. BMC is likely to lose Rs 462 crores in revenue each year.
The Urban Development Department had recommended a property tax exemption beginning in April, but Thackeray and UDD Minister Eknath Shinde rejected it, insisting that it begin in January. The government will shortly draught an ordinance proposing a modification to the Mumbai Municipal Corporation Act 1888 to allow for the introduction of a property tax exemption for residential units of up to 500 square feet in the Brihanmumbai Municipal Corporation (BMC) territory.
The Bharatiya Janata Party (BJP), on the other hand, has asked that the waiver take effect from 2017 when the Shiv Sena unveiled their Brihanmumbai Municipal Corporation (BMC) election agenda. Due to the covid epidemic and lockout, Brihanmumbai Municipal Corporation (BMC) expected to collect Rs 6,768 crores in property taxes in 2021-21 but only managed to mobilise Rs 4,468 crores. The Brihanmumbai Municipal Corporation (BMC) expects to collect Rs 7,000 crores in property taxes in 2021-22.
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