BMC general body also clears proposal to give 60 per cent concession for houses measuring between 500 sq ft and 700 sq ft
The general body of Brihanmumbai Municipal Corporation (BMC) on Thursday cleared a proposal to waive off property tax for residential houses measuring up to 500 sq ft and to give a 60 per cent concession for houses between 500 sq ft and 700 sq ft, a poll promise by the Shiv Sena ahead of the civic elections.
Now, the proposal will be sent to the state government for necessary changes in the law to provide benefits to the households.
A senior BMC official said that around 15 lakh houses in the city fall in the “up to 500 sq ft” category, which will get complete property tax waiver, and about 2 lakh houses are eligible for the 60 per cent concession.
Before the civic election, Shiv Sena had promised to waive off property tax for residential houses measuring up to 500 sq ft. However, the party had received flak from residents and other political parties after the property tax waiver did not find place in 2017-18 budget of the civic body.
Shiv Sena’s senior corporator and leader of House Yashwant Jadhav moved a notice of motion during the general body meeting on Thursday, proposing the waiver and concessions. Jadhav said, “People who reside in houses less than 500 sq ft cannot pay property tax as they have been relocated from the slums.” He added that his party fulfilled the promise made during the poll.
He informed that the proposal would now be sent to the state government, for making necessary changes in the law to allow the waive-off and concessions.
Jadhav also informed that an amendment was proposed to waive off the property tax for houses up to 500 sq ft in March 2015. But that was not materialised then.
Jadhav’s current proposal mentions that the tax waiver and concessions should be given for the period of 2015-2020. “After the proposal gets approval from the state government, the BMC will have to return the property tax collected from 2015,” said Jadhav, adding that the waiver and concession are not just for five years. “Once the necessary change is made in the law about it, we will continue with the relief,” he added.
Analysis
With the introduction of GST, the BMC had to do away with Octroi, one of its primary sources of revenue. It, however, has received Rs 647 cr from the government as compensation. If the current proposal is passed, the BMC will incur loss of approximately Rs 500 cr per year. Returning the property tax that has been collected will be a difficult job for the civic administration. With the loss of revenue, the BMC will have to look at other avenues to fund major infrastructure projects for the city.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "houses")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}