12% increase in residential property tax proposed by Mumbai Mumnicipal Administration

Q: Hi, from April 1st the owner of a residential property will have to pay only 11.74% more than what is paid now.

Vasanth,

18th March 2015

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Replies (2)

Yup,
Even the BMC Official were confident the new formula would be approved in the standing committee meeting. If the new formula is not approved, then property tax will increase by 27.43%.

Harmeet Kaur,

18th March 2015

Comment

Well Harmeet,
The BMC has a target of collecting Rs 6000 crore in property tax every year. In addition to Rs 4563.33 crore they are expecting to get Rs 90 crore on average from new properties or change of users every year. So, they are meeting their target and not even burdening Mumbaikars.

Kaushik Bardia,

18th March 2015

Earlier, they would have got Rs 1320.21 crore but now with the new proposed formula they will get Rs 1475.22 crore. From open lands they would have got Rs 460.32 crore but can now, as per the new proposed formula, expect to get Rs 595.98 crore. On residents the increased burden would be only 11.74%.

Harmeet Kaur,

18th March 2015

Right Vasanth, If the new formula proposed by the municipal administration to calculate property tax in the city is approved by the standing committee of the BMC, then from April 1st the owner of a residential property will have to pay only 11.74% more than what is paid now.

Harmeet Kaur,

18th March 2015

Comment

Hi Harmeet,
From now onward, as per the new formula the average of the increase in property tax across all categories will be 14.52%. The new formula to calculate property tax on the basis of carpet area was presented to the group leader of political parties on Monday.

Kaushik Bardia,

18th March 2015