CM puts on hold BMC’s tax on rent

Sends letter asking if such a heavy levy is logical

MUMABI: Chief minister Vilasrao Deshmukh has put on hold the BMC’s decision to levy heavy taxes on rental properties. In a letter to the Brihanmumbai Municipal Corporation, Deshmukh has asked some hard questions on its plan to collect property tax of up to 83.5 per cent of 50 per cent of the rent paid.

According to a secretary in the CMO, “In the letter Deshmukh has asked the BMC commissioner [Jairaj Pathak] whether they have adequate monitoring mechanism to ensure effective implementation of property tax.” He asked on what basis this law was being considered now. Would it not encourage inspector raj and provide new opportunities for corruption? Moreover, was the civic body adequately staffed to handle the issue?

The chief minister also wanted to know how the civic body had arrived at the figure of  83.5% of half the rent. Would this not overlap with other taxes?.

A close aide of Deshmukh confirmed, “It is true that the CM had sent a letter to BMC asking details on the property taxes on rental properties. After we receive the reply from the BMC, the government will decide the next course of action.” The CM’s office had also made it clear to the BMC not to implement the decision until the state government gave its permission.

BJP corporator Ashish Shelar had also written to the CM demanding a stay on the BMC’s move.