While civic ruler Shiv Sena is trying to project its decision of waiving property tax for houses up to 500 square foot as an achievement, the opposition is looking at it as eyewash.
While civic ruler Shiv Sena is trying to project its decision of waiving property tax for houses up to 500 square foot as an achievement, the opposition is looking at it as eyewash.
The Congress claimed on Wednesday the 'general tax' component that has been waived is only a minute portion — a tenth to less than a third — of the entire tax pie. Citizens continue to pay other components which are not yet exempted, it said.
The Brihanmumbai Municipal Corporation has kept mum on the Congress claims.
In 2017, when the last municipal polls were held, Sena and BJP promised to waive property tax on small houses. But the city administration did not raise the issue during the two subsequent civic budget announcements. On March 8 this year, the state issued a government resolution mentioning that general tax has been waived on houses up to 500 sq feet. In the next two days, it issued an ordinance to the effect. On Wednesday, however, Mumbai Congress chief Milind Deora called it an "election jumla" (false promise) and appealed to Mumbaikars not to pay the tax till the promise is fulfilled entirely.
Last week, Congress corporator from Bandra Asif Zakaria sought a clarification from BMC boss Ajoy Mehta citing a disconnect between the ordinance and the statement on property tax.
"The decision is just a farce. Effectively, only 10 to 30 per cent of the property tax will be waived. While section 140 (c) seems to have been amended to waive the entire property tax, the statement speaks of waiver of only the general tax," questioned Zakaria.
Shiv Sena leaders earlier saod that they would keep their promise to Mumbai kars on property tax exemption.
Amid the row, administrative officers from the BMC are tightlipped over the property tax issue.
Deputy municipal commissioner Vijay Balamvar and assistant municipal commissioner Devidas Kshirsagar remained unavailable for comment.
After the cancellation of octroi, property tax has become BMC's single largest source of revenue.
Gauging the criticality of the issue, the administration seems disinclined to clear the confusion before the polls.
Playing at taxing
- Rs 5,000 cr, BMC annual earnings from property tax
- Rs 350 cr, Property tax collected from 15 lakh houses under 500 sq ft
- March 10, state issues ordinance amending section 140 (C) of Mumbai Municipal Corporation Act to exempt 'general tax' component.
- General tax varies from 10 to 30 per cent of hte total tax structure
- Property tax has othercomponents: water tax, fire tax, sewerage tax etc.
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