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The Thane Municipal Corporation's general body has approved a 12 per cent hike in property tax for residential properties and 20 per cent for non-residential properties, along with a new property transfer fee linked to the government-approved market value of authorised properties. The decision, taken barely four months after the civic body presented a no-confidence-hit budget, has drawn opposition from both the NCP (SP) and the BJP, a partner in the ruling alliance, with critics alleging the proposal was cleared without adequate discussion.
The Thane Municipal Corporation (TMC) has cleared a 12 per cent increase in property tax for residential properties and a 20 per cent increase for non-residential properties, along with the introduction of a new property transfer fee linked to the government-approved market value of authorised properties. The decision was approved by the civic general body, setting up a financial burden for residents that has already drawn criticism from political parties across the spectrum, including a partner within the ruling alliance itself.
The move comes barely four months after the TMC presented its budget for the year, and has been described by sections of the opposition as a double blow for residents, coming as it does with both a tax hike and a fresh transfer levy introduced in close succession. According to the civic body, the transfer fee will be calculated based on the Ready Reckoner or government-approved market value of properties that hold valid authorisation, though the exact structure of the levy and the categories of transactions it will apply to have not been detailed publicly by the corporation.
The Nationalist Congress Party (Sharadchandra Pawar) faction was among the first to formally oppose the hike, with district NCP (SP) president Manoj Pradhan addressing a press conference in Thane on Tuesday to criticise the civic body's decision. Pradhan alleged that several election promises made by the ruling Shiv Sena-BJP alliance, including the construction of a cancer hospital in the city, remained unfulfilled even as residents were now being asked to pay higher taxes.
Notably, the Bharatiya Janata Party, itself a partner in the ruling alliance running the TMC, also hit out at the civic body over the decision. Both the BJP and the NCP (SP) alleged that the proposal to raise property tax had been cleared without proper discussion within the general body. The BJP has demanded that the hike be scrapped altogether, and has additionally called on the TMC to first recover its outstanding dues from defaulters before seeking additional revenue from compliant taxpayers.
The property tax increase and the new transfer fee are expected to have implications for both homeowners and the wider real estate market in Thane, one of the largest and fastest-growing urban centres within the Mumbai Metropolitan Region. Higher recurring holding costs on residential and commercial properties, combined with an additional levy on ownership transfers, could have a bearing on transaction costs for buyers and sellers in the city, at a time when property markets across the MMR have continued to see steady activity.
The TMC has not issued a detailed public statement addressing the specific criticisms raised by the opposition parties regarding the process by which the proposal was cleared. With political pressure mounting from within and outside the ruling alliance, the civic body's handling of the tax hike and the newly introduced transfer fee is likely to remain a point of contention in the coming weeks, as residents, traders and political parties await further clarity on the implementation timeline and the precise mechanics of the new charges.
Source PTI
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