In furtherance of the promise made by Shiv Sena Chief Uddhav Thackeray during their election campaign the Shiv sena-BJP led government approved a proposal to exempt residential properties up to 500 sq ft. (Carpet Area) within the Mumbai municipal area limits free from property tax on March 8th 2019. The Chief Minister Devendra Fadnavis announced that the demand would be accepted.
The approved proposal will benefit nearly 14.98 Lakh such property owners who have houses with an area of up to 500 sq ft. The BMC gets around Rs 350 crores revenue annually, by levying property tax on the capital value of these houses.
Following the approval congress alleged that BJP and Shiv Sena has ‘fooled the people of Mumbai and failed to fulfill its promise’ he claiming that government waived only 0.110% of the property tax for such houses. However, BJP further has clarified that all components of the property tax would be waived off in future bills. In order to explain their move BJP’s Mumbai Chief Ashish Shelar said that “civic rules have been changed to waive general component of property tax for houses up to 500 sq ft. However, to waive other components of property tax, we need to change the state rules. The process of issuing an ordinance in this regard is on.”
The government resolution on March 8th amended Section 140 (C) of the Mumbai Municipal Corporation Act and general tax component which varies from 10-30% of total tax was exempted.
Courtesy/By: Jayant Upadhyay
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23 Apr 2019
