Mumbai: BJP, Congress demand scrapping of proposed hike in property tax

BJP and Congress on Friday demanded scrapping of the proposed hike in property tax by BMC. While BJP accused the civic body of burdening common citizens but giving relief to builders and contractors, Congress demanded a complete waiver of property tax for structures up to 500 sq ft and a 60% rebate for structures between 500 sq ft to 700 sq ft along with scrapping of proposed hike.

Notably, Mayor Kishori Pednekar assured on Thursday that a hike will not be allowed considering the Covid-19 situation. All parties including Shiv Sena, which rules the BMC, have opened up against the administration’s proposal that allows 14 per cent hike in property tax 14 per cent across the city.

“On one hand, the BMC is giving concessions to builders, contractors and commercial hoarding owners, on the other hand, it is putting a burden on common citizens. It is providing relief to the rich. Why this double standard? The proposal was brought in committee by the administration with the support of Shiv Sena. Our demand is to scrap this proposal,” said Prabhakar Shinde, BJP group leader in BMC.

Shinde said that BJP had already written a letter to the BMC commissioner to postpone scheduled property tax revision.

Mumbai Congress president Bhai Jagtap has written a letter to the chief minister demanding complete exemption of property tax for structures up to 500 sq ft and 60 per cent rebate for houses between 500 sq ft to 700 sq ft. “Despite the promise of full exemption in property tax for structures up to 500 sq ft only general tax component (10% of entire tax) is being waived. We are demanding full exemption for such structures and 60% rebate for houses of area 500 sq ft to 700 sq ft,” said Jagtap on Friday while addressing the press conference.

“The BMC should defer property tax revision for the next five years as Covid-19 has affected citizens badly,” he added.

On Wednesday, a proposal from BMC assessor and collector department was tabled before the Standing Committee for final nod, which will be in force from April 1, 2021, to March 31, 2025. BMC has proposed to increase property tax based on ready reckoner rates as on April 1, 2021. The BMC has said that a tax hike will help them to earn about Rs 1,000 crore during 2021-22.