Mumbai: BMC to not tax city slums

Mumbai: In a major relief to the slum dwellers in Mumbai, the Brihanmumbai Municipal Corporation ( BMC) put on hold its plan of imposing the tax on slums. However, at a time when the cash-strapped civic body is trying to create more sources of income, this step will force it to give up on an expected annual revenue of Rs 250 crore. This comes following the pressure put on the civic body by the Shiv Sena.

According to the officials from the assessment and collection department of the civic body, the BMC had proposed to levy property tax of Rs 2,400 to Rs 1,800 on each slum structure, depending on its type and size. In April, the civic body in its budget of 2017-18 had proposed to impose property tax on slums, so revenue of Rs 250 crore, reported Mid-Day.

A senior civic official from the department said, “The proposal has been put on hold. We were ready to go ahead with the plan, but as Sena has proposed tax exemptions on houses upto 700 square feet, we decided to keep it on hold. The Sena’s proposal has been sent to the Urban Development Department for approval, as the BMC Act, 1988 needs to be changed for its implementation.”

He further said, “If the state allows rebate on houses which are less than 500 square feet, then there is no question of imposing property tax on slum structures. Also, in order will need to change the BMC Act, as currently there is no such provision.” Meanwhile, sources said that if the tax waiver proposed by Sena comes into effect, then it would put a burden of Rs 500 crore on the BMC. Hence, the BMC would lose a total revenue amounting to Rs 750 crore.