Mumbai BMC publishes its budget. Is Property Tax Revised?
The Municipal Corporation of Greater Mumbai (MCGM) formerly and commonly known as the Bombay Municipal Corporation (BMC) is the governing civic body of Mumbai, the capital city of Maharashtra. It is India’s richest municipal corporation. The MCGM’s annual budget exceeds that of some of India’s smaller states. The BMC budget in the ongoing fiscal 2019-2020 was pegged at Rs 33,441.02 crores, which was 8.95% more than the previous year’s budget. Budget 2018-19 was pegged at Rs 30,692.59 crores.
BMC,today announced the allocation of funds for its education budget for the year 2021-22. The budgetary estimates for the year are set at Rs 2945.78 crore, which is marginally higher than that of the previous year wherein the budgetary estimates were Rs 2944.59 crore.Owners of residential properties in Mumbai are liable to pay property tax to the BMC every year.For those who own a flat in a building, the property tax is mostly collected by housing society as part of the monthly or annual maintenance charges. A revision of property tax is generally done every five years. Therefore, it was likely that property tax would be revised in this budget.
Has the BMC hiked the property tax?
- The BMC Budget has not proposed any increase in property tax this year. The revision in property has been deferred.
- The civic body has set aside an amount of Rs 15.90 crore for supplying essential Covid-19 equipment like hand sanitisers, soap, hand wash and others, anticipating the re-opening of schools in the coming days.
- It is also working to form a child protection team in order to look at matters with relation to the violation of child rights and similar other grievances. A policy draft for the same is currently underway.
- Rs 2 crore has been set aside for the opening of 10 new CBSE schools under the civic body. These schools will be housed in existing BMC buildings and will be free of the children of the respective buildings.
- Monsoon flooding in Mumbai is common. To address this serious issue, the state government has spotted 386 chronic flooding spots in MCGM area out of which 171 spots have been already tackled.120 additional flooding spots will be tackled before the onset of monsoon 2021.
- Dabbewala Bhavan to be set up in central Mumbai
- With the number of hoardings increasing and defacing the skyline of Mumbai, the MCGM has proposed to decongest the skyline with a new hoarding policy.
However, even if the hike in property tax was not announced in the budget document. But the hike in property tax could be announced in the months following the beginning of financial year 2021-22. It is important to remember that the property tax adds to the municipal funds, out of which salaries of municipal workers, such as those who sweep the road or maintain the sewage system of the area, are paid out.If someone fails to pay property tax on time, some municipal corporations initially give a show cause notice to recover the dues. If someone fails to pay it even after the notice, the authority can recover the same by way of attachment of property, bank account, rent and all moveable properties, but such steps are typically taken in extreme cases. Wilful default may also attract imprisonment. Moreover, there is a penalty for late payment or default. One will have to pay a fine in the form of penal interest on the amount due. The rate depends on the respective authority.