This year, the BMC collected a record amount of Property Taxes

by Web Desk | Published: 06 May 2022

BMC Elections 2022
The BMC has now recovered Rs 173 crore from April 1 to May 5 after a record property tax collection in 2021-22. The BMC was only able to add 10% to its kitty during this time last year. Property tax is one of the city's most important sources of revenue. Property taxes in Mumbai are reviewed every five years, according to the Mumbai Municipal Corporation Act.
It was last updated in 2015. However, due to the pandemic, a change was postponed until 2020. Despite the Covid-19 scenario and a tax exemption on residential projects up to 500 square feet, the BMC earned Rs 5792 crore in property tax in 2021-22. The local authority reported that the collection increased by 13% over the previous fiscal year, making it the largest in its history.
Since the outbreak, tax collections have decreased. In 2019-20, the assessment and collection department (A&C) recovered Rs 3,735 from the government. Apart from the annual recovery, the BMC owes Rs 19,000 crore in unpaid property taxes. As a result, the BMC began pursuing defaulters and expects to collect Rs 5,094 crore in 2020-21. "A surge in recovery prompted systemic aggressive action against defaulters, hastening the recovery process," a senior city official explained.
"The BMC has received Rs 173 crore in property tax in the last one month, which is more than the previous financial year," said Deputy Municipal Commissioner Sunil Dhamne. We have also accelerated the recovery process by framing an SOP for the auction of defaulters' properties."
Image Courtesy: Twitter @fpjindia