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Developers likely to be charged fire services fees from November

BMC is expected to make a cool Rs 330 crore annually through the new tax

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Brihanmumbai Municipal Corporation (BMC) is likely to introduce a new tax—fire services fees—from next month. A proposal in this regard is expected to be tabled before the civic house next month.

The new tax, to be collected as per Maharashtra Fire Prevention and Life Safety Measures Act, 2006, is supposed to be collected from developers (of proposed residential dwellings, educational institutions, hotels, commercial complexes and hospitals).

The civic law panel had approved the new tax proposal just ahead of the parliamentary election in April-May. Corporators, had opposed it initially saying the new fee would put the burden on occupants, who already pay fire protection tax.

According to committee members, it's the consumers who will end up paying the new tax—to be recovered from developers before they are issued NOC for their projects. However, corporators later approved the proposal after the municipal administration assured them that the new tax wouldn't apply to buildings of old age homes, orphanages and NGOs working for physically-challenged.

"The new fees, to be recovered from developers, will be calculated based on type and area of a building," a fire official said.

If approved, developers will be required to pay taxes between Rs 5,000 to Rs 2 lakh for new projects. "The tax will not be applicable to already constructed/occupied structures, but to ones proposed. However, this will all be subject to approval of the house," the official added.

BMC is expected to make an estimated Rs 330 crore annually through the new tax.

In addition to this, the house is also likely to discuss a proposal to increase licence fees by 50 per cent, which is set to affect shopkeepers/vendors, and eventually the end-users/consumers as prices would go up.

It was in 2005 that the corporation hiked the licence fees last. The increase then was 75%. This time, the civic administration is proposing an increase of 25 to 50%. Chemists, saloons, photocopy shops, bakery owners, tailors, hoteliers, bhelpuri stalls, etc could be hit by a 50% hike. "Blood bank owners and dry-fish vendors have been excluded from the list of vendors to be taxed," an official said.

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