New property tax bills ready but corporators could delay approval
After a delay of one-and-a-half-years, the Brihanmumbai Municipal Corporation is finally ready with tax bills for a major chunk of properties in the city as per the new capital value-based system. However, the administration is worried that corporators from various political parties will not allow the system to be introduced due to the civic elections due in February next year.
Property tax bills that are usually dispatched in April have still not been sent out this year. After octroi, property tax is the biggest source of income for the civic body.
The state government had passed an ordinance in 2009 asking all municipal corporations to switch to charging property tax on the basis of the capital value of the property as against the current system of charging it on the basis of the property’s rent.
Since a large part of the island city has old properties, the rents of which have been frozen under the Rent Control Act, these properties will see a surge in the property tax rates. Since suburbs have new constructions and higher rentals on them, the new system will bring their property tax value down.
A Congress corporator and member of the Standing Committee said it is unlikely that the committee will approve the proposal to dispatch bills as per the new system before the elections. The proposal was put forward before the committee on Wednesday but was not discussed and put off. “Since the general trend will be that of rising charges in the island city, political parties are likely to delay the approval,” said the corporator.
Technical glitches had delayed the collection of data for the 3.22 lakh properties across the city and subsequently deciding the rate of taxation. Bills for about 2.70 lakh properties have now been prepared and are ready for dispatch, but are waiting for the approval of the standing committee. Joint Municipal Commissioner S S Shinde said as and when the remaining properties are measured, their bills will be dispatched before the end of this year. “We hope to send all the bills much before April next year,” said Shinde.