Keypoints:
- Mumbai Mayor announced this relief after the BMC proposed hike in property tax.
- Value of property tax is assessed by BMC every 5 years to charge property tax.
- Brihanmumbai Municipal Corporation has ruled out the 14 per cent hike in property taxThe administration had proposed an increase in property tax of 14 per cent up to 2025.
On Friday, Mumbai Mayor Kishori Pednekar provided relief to Mumbaikars as she informed that the property tax will not be hiked in Mumbai till Covid situation continues, reported ANI.
“There will be no hike in Property tax in Mumbai till the Covid situation continues. We don’t know how long it will take but till then we will not burden Mumbaikars by increasing the property tax,” ANI quoted Pednekar saying.
Speaking to media persons, she 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.”
This Development came after the Brihanmumbai Municipal Corporation (BMC) proposed a hike in property tax. The mayor had rejected this proposal and had said that people are already facing financial hardships due to Covid lockdowns and restrictions.
Many of the elected corporators are not in favour of a rise in property tax. They are claiming that the proposal for its hike has been moved by bureaucrats running the BMC.
Earlier this week, the BMC’s assessor and collector department had tabled the proposal which was to be effective from April 1, 2021 to March 31, 2025, before the Standing Committee for final approval. Property tax was proposed to go up to 14 percent.
In the previous year, the State Cabinet decided not to go for property value assessment, which was leading to no revision in property tax in the financial year. Hike of around 17 percent was expected last year.
India’s richest civic body assesses the value of properties every 5 years in order to charge a property tax, which is levied on the capital value of the property and is based on the existing ready reckoner rates.
