The decision comes following the failure of these institutions to meet certain criteria set up by the civic administration last year.
The Brihanmumbai Municipal Corporation (BMC) has revoked its decision of property tax exemption for several educational institutions. The decision comes following the failure of these institutions to meet certain criteria set up by the civic administration last year. The institutions, that fell under charitable organisations, were claiming benefits under property tax waiver scheme.
In the last two weeks, the BMC's assessment and collection administration has issued notice to several well-known aided educational institutions ordering them to pay their property tax. The issued cropped-up during the standing committee meeting wherein the civic body's decision was criticised.
In January 2017, the BMC had issued a circular demanding for aided education institutions to submit documents to support criteria — from concession in fee for economically backward students to holding special programmes for needy students. However, around 80 per cent aided schools failed to submit required documents following which the civic body decided to revoke the tax exemption.
Asif Zakaria, Congress corporator from Bandra and standing committee member said the BMC's action is against the law. "These institutions are registered with Charity Commissioner as charitable organisations and they are entitled to get exemption from property tax under section 143 (1) (a) of the Mumbai Municipal Act 1966. The circular raises various questions on the ambit of the corporation and the charity commissioner."
Zakaria was backed by Rais Shaikh, SP leader, who said it is unacceptable to cancel the exemption. Father Frazer Masceranhas, manager of St Stanislaus High School, said, "There is already an economic burden on the school that we are struggling with. The cancelling of exemption will make things worse and we might have to shutdown. We appeal to the BMC to continue with the earlier exemption for property tax."
Breaking Rules
- BMC’s assessment and collection administration has issued notice to several aided educational institutions ordering them to pay their property tax
- The issue cropped-up during the standing committee meeting wherein the civic body’s decision was criticised
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