Slums dwellers will have to pay property tax, but not based on land values

Q: According to the civic body's plan, slum dwellers will have to pay between Rs 2400 and Rs 18000 as property tax annually, depending on the size and types of huts.

Aveek Paul,

13th January 2016

Property Tax in Mumbai

property tax

bmc

slum dwellers have to pay property tax in mumbai

property tax on slums

Follow Discussion

Also see discussions for

Mumbai Property Tax Property Tax in Mumbai

Replies (2)

Yes, they will tax all protected and unprotected slum properties. there are approximately 15 lakh slum structures in Mumbai. Under the Jawaharlal Nehru National Urban Renewal Mission, it was mandatory to levy property tax on every structure in the city.

Jackie,

13th January 2016

Comment

Right Jackie,
And it is not possible to impose property tax on slums as per the capital value-based system, which operates based on Ready Reckoner rates. If they go by Ready Reckoner rates for various areas, slums would have to pay excessive property tax. So they have proposed to impose a lump sum amount based on the size and type of the huts considering their economical and social status.

Dharmaja Patel, Mumbai

13th January 2016

But there is a problem on imposing property tax on slum dwellers as In order to levy property tax as a lumpsum, the BMC will have to make amendments to the Mumbai Municipal Corporation Act, which means the BMC’s law committee and then the general body of the BMC will have to give their approval to the move, after which the amendment will be sent to the state government.

Jackie,

13th January 2016

Yes, they are planing and hopefully will impose from April this year. So, before that, they will try to get the necessary amendments. Now, the proposal has placed before the law committee that has asked more clarity on the definition of slums by the civic administration.

Dharmaja Patel, Mumbai

13th January 2016

BMC is now preparing to impose tax on slum dwellers' properties in the city for the first time ever from April this year. BMC has also decided not to tax such settlements under the capital value-based assessment system. Instead, a lump sum amount will be charged annually.

Jackie,

13th January 2016

Comment

Hi Jackie,
Currently, there is no property tax on slums. Earlier, in 2006-07, the civic body has started collecting service charge of Rs. 100 for residential and Rs 250 for non-residential structures. But now they are planning to impose property tax on slums built both on government and private lands. But it doesn't mean that slums will be regularized. They are taxing them for whatever civic amenities they are getting.

sadhana,

13th January 2016