'No Hike In Property Tax Till Covid Continues', Says Mumbai Mayor

A day after the BMC proposed a hike in property tax, Mumbai Mayor Kishori Pednekar clarified that Mumbaikars will not be burdened by increasing the property tax since people have lost jobs and the economy has been affected.

Mumbai: There is some relief for Mumbai residents after Mumbai Mayor Kishori Pednekar informed that the proposal from Brihanmumbai Municipal Corporation (BMC) for a hike in property will not be considered as people are already reeling under financial hardship owing to lockdown.

A day after the BMC proposed a hike in property tax, Mumbai Mayor Kishori Pednekar talking to mediapersons said, “The proposed hike in property tax will not be implemented. Although Covid-19 cases have dipped, the situation is still not normal. People have lost jobs and the economy has been affected. Considering that there will be no hike in property tax.”

Pednekar clarified that there will be no hike in property tax in Mumbai till the Covid-19 situation continues. “We don't know how long will it take but till then we will not burden Mumbaikars by increasing the property tax,” she added.

According to corporators, the proposal to hike property tax has been moved by bureaucrats running the BMC and most elected corporators are not in favour of it, as per the Indian Express report. As per the report, those corporators mostly from the ruling Shiv Sena, believe that a hike would jeopardise votings with BMC elections slated to be held next year.

What was the proposal?

On Wednesday, the BMC’s assessor and collector department had tabled the proposal regarding poperty hike to be in force from April 1, 2021 to March 31, 2025 – before the Standing Committee for final approval. The proposal is based on ready reckoner (RR) rates as on April 1, 2021. After the hike, it was expected that the current property tax rates may go up to 14 per cent.

RR rate is the minimum value of property set by the government which helps to determine true market value of immovable properties including land, residential, commercial and industrial.

However, the proposal was kept on hold after leader of opposition Ravi Raja opposed the move and asked for more time for study it.

The last time property tax rates was revised was in 2015.