In contrast to the earlier reports, Mumbai mayor Kishori Pednekar on Friday provided relief to the Mumbaikars as she informed that the property tax will not be hiked in Mumbai till the Covid situation continues, reported news agency ANI.
“There will be no hike in Property tax in Mumbai till the Covid situation continues. We don’t know how long will it take but till then we will not burden Mumbaikars by increasing the property tax,” ANI quoted Pednekar saying.
The development came after the Brihanmumbai Municipal Corporation (BMC) proposed a hike in property tax. The mayor rejected the proposal saying that the people are already facing financial hardships due to the Covid-induced lockdowns, according to media reports.
“The proposed hike in property tax will not be implemented. Although Covid-19 cases have dipped, the situation is still not normal. People have lost jobs and the economy has been affected. Considering that, there will be no hike in property tax,” The Indian Express quoted the mayor as saying.
Most of the elected corporators are not in the favour of raising the property tax, they claim that the proposal for its hike has been moved by bureaucrats running the BMC, as per the reports.
The BMC’s assessor and collector department tabled the proposal earlier this week, to be effective from April 1, 2021 to March 31, 2025, before the Standing Committee for final approval. The property tax rate was proposed to go up to 14 per cent, the IE report claimed.
Last year too, the state cabinet decided to not go for property-value assessment, leading to no revision in property tax during the financial year. A hike of around 17 per cent was expected last year.
The richest civic body in India assesses the value of properties every five years to charge a property tax, which is levied on the capital value of the property and is based on the existing ready reckoner rates.