The Brihanmumbai Municipal Corporation has sought to alter property tax from the rateable value to the capital value system.
The civic body’s plan to reform the computation method of property tax is likely to be delayed for yet another year.
The Brihanmumbai Municipal Corporation (BMC) has sought to alter property tax from the rateable value to the capital value system.
The inability to implement the new system has come in the wake of the baseline survey of city’s buildings, which will not be carried out.
To upgrade calculation of property tax, BMC has to compile a list of residential and commercial structures in the city by January. It had decided to map all the buildings through the Geographic Information System (GIS). However, after reservation from the ministry of defence, the m
odality of the survey was scrapped and BMC decided to conduct the survey manually.
However, it has now expressed its inability to carry out the survey even manually. SS Shinde, joint municipal commissioner said, “We could not use the GIS method, so a building’s carpet area was supposed to be measured by civic officials. The exercise was slated to be carried out across the city to tabulate the total units in the city. But BMC has aborted the plan and will not carry out the manual survey.”
In the new method, the capital value of a flat is calculated on a property’s ready reckoner rates and the nature of the building. The BMC has been calculating property tax through rateable value of flat derived through rent.
The BMC has data of buildings as per 2006. The records have only 2.26 lakh buildings. Number of properties in south Mumbai and suburbs is not on available.
“This includes 60,000 slums and old structures and over 40,000 commercial structures,” said PS Kalkoti.
Meanwhile, citizens are up in arms against the new system. More than 500 residents had gathered in Bandra on Sunday demanding the scrapping of the draft rules.
“The new system intends to charge a resident if amenities such as parking lots, lifts, staircase and open spaces are part of the building,” said Shyama Kulkarni, trustee, AGNI.
The new draft rules for the property tax were first introduced in 2006 but they have been pending till date.
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