Mumbai: To develop alternative revenue streams, the BMC has started imposing property tax on commercial structures operating within slum areas, with an expected revenue generation of Rs 200 crores.
However, former Opposition leader and current Mumbai BJP vice president, Ravi Raja, has opposed the move and called for the proposal to be scrapped. He has also released a list of major defaulters across five civic wards in Mumbai, amounting to Rs 899 crores in unpaid property taxes. Raja claimed that this is just the tip of the iceberg, as the actual pending dues from major defaulters are nearly Rs. 5,000 crores.
The BMC's assessment and collection department has recorded 2,43,989 properties across 24 administrative wards in Mumbai. As part of a new initiative, the BMC has started a comprehensive survey to identify and document commercial units operating in slum areas, aiming to include them in the property tax regime. Property tax bills have already been sent to 300 commercial units in these areas.
Meanwhile, Ravi Raja, in a letter to Municipal Commissioner Bhushan Gagrani, has strongly opposed the move. He urged the BMC to withdraw the decision, emphasising that instead of burdening the economically weaker sections earning their livelihoods in slums, the focus should be on tracing and recovering dues from major defaulters who owe crores in unpaid property taxes.
Some of the older commercial structures in slum areas already pay property tax, but several new units have been built in recent years. Officials from the Assessor and Collection Department is visiting these properties, gather the necessary information, and then levying taxes on them.
Property tax is important source of income for the municipal corporation. However, in recent years, there has been a steady decline in property tax revenue, along with a reduction of Rs 10,000 crores in fixed deposits over the past 2.5 years
Wards .....pending dues from big defaulters
A...Colaba, Fort ....Rs. 310.68 crores
L ...Kurla ....Rs.364.52 crores
F North ....Wadala, Matunga...Rs. 124.35 crores
G/ south - Mahim, Dharavi, Worli...Rs.50.23 crores
H West ...Bandra West ...Rs. 49.52 crores
