BMC receives record amounts in property taxes

Despite exempting residential properties up to 500 square feet from paying property tax, the Brihanmumbai Municipal Corporation had earned Rs.3,562 crore through December 31. With three months left in the current fiscal year, the civic organisation has already met 50% of its goal. According to a local source, this is also the highest collection during this time period.

 

The corporation's second-largest source of income is property tax. In contrast to the expectation of Rs.5,400 crore, the BMC collected Rs.5,792 crore last year. The BMC has a target of Rs.7,000 crore for 2022–2023. The state government's decision to exempt residential homes under 500 square feet from property tax, however, has cost the state Rs.462 crore in lost revenue.

 

Property tax collection usually accelerates after November. The revenue has increased over the past two years because of the efforts of the assessor and collection department. According to the sources, the BMC sped up the collection process, which increased recovery this year. By December 31, 2021, the civic authority has received about Rs.3,450 crores.

 

"Instead of housing organisations, we have begun delivering property tax bills to individual flat owners for the first time. As a result, it has been simpler for the owners to pay the payment when it's convenient for them. Owners of real estate who don't pay the tax by December 31 will be charged a 2% penalty starting on January 1. Following an awareness campaign among the populace, the majority of them paid their debts in full by December 31.

 

Additionally, civic officials visited the biggest tax defaulters, including builders, and persuaded them to pay tax in order to escape punishment, according to a civic representative from the assessor and collector department. Sunil Dhamne, a Joint Commissioner, stated, "This year we have set a target for our officers as well and taken their commitment as to how much they can collect. Our representatives called the major defaulters one by one and persuaded them to pay. Every 15 days, I also review the collection.