Own a small flat? Pay property tax from next year
You will have to pay slightly less property tax from next year, when carpet area will be used to calculate the tax, instead of built-up area. On Thursday, the proposal was passed by the standing committee of the BMC. This week, the proposal will travel to the BMC's general assembly of municipal councillors for their final approval.
You will have to pay slightly less property tax from next year, when carpet area will be used to calculate the tax, instead of built-up area. On Thursday, the proposal was passed by the standing committee of the BMC. This week, the proposal will travel to the BMC's general assembly of municipal councillors for their final approval.
Although the proposal has, strangely, gotten heavy flak from opposition parties, the ruling Shiv Sena-Bharatiya Janata party combine has the numbers to push it through.
This proposal will rejig the formula used to calculate property tax, benefiting the middle-class.
Also from next year, the new formula will be applicable to all properties in Mumbai, even those measuring 500 sq ft or less.
But there is no ray of light for residential societies, which will have to pay 11% more by way of property tax, if the proposal is passed.
BMC also proposes to make the property tax rate uniform for various commercial spaces. That means, for instance, that whether a commercial space is a retail store or a warehouse, the same property tax rate will be applicable to it.
The new formula will peg property tax at 14% of the civic body's total revenue, down from roughly 27% each year. Using the new formula will earn the BMC Rs570 crore. Of this, Rs150 crore would come from houses measuring 500 sq feet or smaller.