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The Brihanmumbai Municipal Corporation (BMC) will maintain the current property tax rates for 2024-25 without implementing any revisions. This decision, influenced by past rejections of proposed hikes in 2020-21 and 2022 due to the pandemic, means property owners will not face an increase after nearly a decade. The property tax calculation currently relies on the Stamp Duty Ready Reckoner rates. Despite the lack of a rate hike, BMC collected INR 4,856 crore in 2023-24, surpassing its target of INR 4,500 crore. The BMC's cautious approach aims to balance revenue needs with citizens' financial burdens.
Mumbaikars will see no change in their property tax expenditure this year. The Brihanmumbai Municipal Corporation (BMC) has decided to issue property tax bills for 2024-25 without revising the current rate. Every year, BMC collects property tax from over 900,000 properties under its jurisdiction, with the authority to revise rates every five years. The last revision took place in 2015-16. Authorities rejected proposed increases for 2020-21 and 2022 due to the pandemic and other factors. Advertisement
If officials propose a property tax hike next year, it will follow a decade without any increase. Without elected corporators, the BMC must seek state government approval for any hike. A BMC official noted that they currently levy property tax based on the Stamp Duty Ready Reckoner rates, which establish the property's base value. These rates have remained unchanged since 2015-16.
The civic body believes that proposing a hike this year and again next year, per the five-year revision schedule, could burden citizens for two consecutive years. For the BMC, property tax remains the biggest source of revenue. Until 2017, the BMC relied on octroi as its highest source of revenue before replacing it with the Goods and Services Tax (GST). In the financial year 2023-24, the BMC set a target of INR 4,500 crore from property tax but collected INR 4,856 crore. Initially, the BMC budget for 2023-24 announced a collection target of INR 6,000 crore, which was later revised to INR 4,500 crore.
In summary, the BMC's decision to maintain the current property tax rate reflects its sensitivity to the financial burden on citizens, especially considering the economic impact of the pandemic. The history of rate revisions, pandemic disruptions, and the use of consistent base values for tax assessments create a predictable and stable environment for Mumbai property owners. The BMC's ability to surpass its collection target highlights its financial discipline and strategic foresight in municipal governance.
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