If you are owning a 500-sq ft (46.45 sq m) or less apartment in Mumbai, then henceforth you do not need to pay the property tax to the Brihanmumbai Municipal Corporation (BMC).
The Maharashtra Government on Tuesday made amendment in the Municipal Corporation Act exempting the property tax to property sizes 500 sq ft or less, and the bill was passed in the State Legislative Council on Monday.
Chief Minister Devendra Fadnavis said that the waiving of property tax decision will benefit nearly 30 lakh properties in Mumbai including 15 lakh residential properties as well. Most of the small size apartments are developed either by MHADA or the SRA. "The BMC is financially capable to bear the cost of waiving of property tax. If other municipal corporations can do the same, then we will welcome their decisions and approve it in the Maharashtra state assembly," he clarified.
The BMC gets nearly a revenue of Rs 350 crore annually by levying property tax on the capital value of these houses. This decision was earlier approved by the general body of the BMC, state cabinet and state assembly, while on Monday, it was approved in the State Legislative Council as well. The act will come in effect once the governor signs the bill.
However, Rahul Narvekar, NCP MLC pointed out that the bill will not give justice to all residences of Mumbai. "In Mumbai, a 500-sq ft of flat cost in Nariman Point and that of suburbs like Dahisar and Mulund will be different. In Mumbai, locations matters. Hence, the property tax exemption should have been based on the government value of the flat rather than its size," Narvekar said.
Sharad Ranpise, Congress MLC said that this decision should be applicable to all Maharashtra. "CM Fadnavis should look into this issue and everyone in Maharashtra should benefit from it," Ranpise demanded.
