Updated February 3rd, 2024 at 16:01 IST
Mumbai Corporation revises property tax target amidst budget presentation
Property tax serves as the second-highest revenue source for BMC, following grant-in-aid compensations in lieu of Octroi.
BMC revises tax: The Brihanmumbai Municipal Corporation (BMC) in Mumbai has revised its property tax collection target for the financial year 2023–24, reducing it from Rs 6,000 crore to Rs 4,500 crore, according to the budget document presented on Friday. The budget for FY24–25, amounting to Rs 59,954.75 crore, was also unveiled during the presentation.
The adjustment in the property tax target follows the initial estimate of Rs 6,000 crore, with the revised figure reflecting a decrease of Rs 1,500 crore. As of January 31, 2024, the BMC had earned Rs 605 crore from property tax between April 1, 2023, and the end of January. The proposal to maintain unchanged property tax rates for 2023–24 was pending before the Maharashtra cabinet, and a decision was anticipated on Monday.
Property tax serves as the second-highest revenue source for BMC, following grant-in-aid compensations in lieu of Octroi. Considering it is an election year, expectations lean towards no increase in property tax for the fiscal year 2024–25.
The BMC anticipates generating income from various sources, including Rs 4,950 crore from property tax, Rs 13,331.63 crore from grant-in-aid compensations, Rs 5,800 crore from the DP department, Rs 2,206.30 crore from interest on investment, and Rs 1,923.19 crore from water and sewerage charges.
Municipal Commissioner Iqbal Singh Chahal mentioned that approximately 70 per cent of the land in Dharavi, recognised as Asia's largest slum cluster, belongs to the BMC. Consequently, the civic body plans to request that the state government allocate a portion of the premium from the Dharavi redevelopment project.
(with PTI inputs)
Published February 3rd, 2024 at 16:01 IST