Mumbai News: BMC Collects ₹5,069 Crore In Property Tax, Targets ₹6,200 Crore For FY 2024-25

Mumbai: With just one month left until the end of the financial year, the BMC has successfully collected Rs 5,069 crores in property tax revenue, compared to Rs 6,200 crores projected for 2024-25. A major crackdown on large defaulters and the early delivery of property tax bills have boosted revenue, according to a civic official. Last year, the BMC had collected only Rs 3,147 crores by March 31.

In the 2023-24 financial year, delays in sending bills, legal complexities over new tax calculation methods, and the absence of a hike in the last five years led to the lowest property tax collection in the past eight years. However, the BMC compiled a list of 500 major defaulters, including prominent real estate developers, government corporations, and even civic offices.

A senior civic official said, "Officials from the assessment and collection department were tasked with tracking down the defaulters and persuading them to settle their dues. While some have cleared their outstanding payments after receiving notices, properties of those who fail to pay will soon be auctioned."

If property taxes are not paid within the stipulated period, the BMC initiates the process of attaching and auctioning goods from the defaulting property, as per Sections 203, 204, 205, and 206 of the Mumbai Municipal Corporation (MMC) Act. Between May 26, 2024 to February 28, 2025 the highest property tax collection comes from the Western suburbs, with Rs 2,527 crores, followed by Rs 1,557 crores from the island city and Rs 977 crores from the eastern suburbs.

To recover property taxes, the BMC has served attachment notices to around 800 commercial establishments in slums across Mumbai. Many of these establishments, includes godowns, workshops, hotels, and shops among the defaulters. The civic body expects to collect Rs 350 crores in 2025-26 from commercial units in slums.

Property tax is the second highest source of revenue for the municipal corporation. According to civic calculations, the pending dues up to March 2010 amounted to Rs 3,242 crores, which have now escalated to Rs 5,397 crores after the addition of penalties over the last 15 years.