Good News, Mumbaikars! No hike in property tax for FY 2024-25
Good News, Mumbaikars! No hike in property tax for FY 2024-25
With this, Mumbai’s property owners will continue to pay tax as per the rate revision that was made in the year 2015-16.
August 3, 2024
In welcoming news for property owners in Mumbai, the Brihanmumbai Municipal Corporation (BMC) has decided not to increase the property tax for the year 2024-25.
With this, Mumbai’s property owners will continue to pay tax as per the rate revision that was made in the year 2015-16.
The BMC is empowered to revise tax every five years as per the property tax guidelines, officials said. However, due to the pandemic, the civic body didn’t raise the property tax in 2020-21, five years after the previous tax revision. Therefore, it will now consider the five-year period from 2020-21 for the tax revision, which will be due in the financial year 2025-26.
Next year, the property tax hike may be at par with the ready reckoner rate. According to BMC estimates, property tax may rise by 14 percent.
As the civic House of elected representatives has been dissolved, the BMC administration has to seek permission from the state government for permissions regarding tax hikes.
Though BMC could have sought permission from the state government’s urban development department to hike the property tax, it has now been decided to hike the property tax next year.
In 2021-22, the civic standing committee rejected the administration’s proposal of a hike in property tax. Since then the state government has denied BMC the permission to hike property tax, an official said.
The BMC had set a target of Rs 4,500 crore from property tax for the financial year 2023-24; however, they collected Rs 4,856 crore.
