Mumbai: The BMC’s issuance of security/ad-hoc property tax bills with increased rates for 2025–26 has raised public concern. The Congress party objected, citing hikes of up to 40% in some cases, and urged Chief Minister Devendra Fadnavis to intervene and halt what it called an illegal and unjustified increase.
However, civic officials clarified that BMC has the authority to reassess properties retroactively and levy taxes based on the revised assessment policy.
Notably, the BMC is required to revise property tax rates every five years, but the last update was in 2015–16. Revisions were deferred during 2020–21 and 2021–22 due to COVID-19 and have been postponed since.
In 2023, the Supreme Court (SC) dismissed a BMC review petition against a 2019 Bombay High Court ruling that struck down certain rules for retrospective tax assessment. SC directed the BMC to rework the capital value of all Mumbai properties and refund citizens who paid property tax under the Capital Valuation System (CVS) for 2010 to 2012.
Asif Zakaria, former Congress corporator said, "BMC has failed to implement court orders and continues to delay reassessment and refunds owed to Mumbaikars. Without finalising the 2010/2015 CVS rules, the BMC is now issuing 2025–26 property tax bills with arbitrary hikes of up to 40%, compounding inflated charges since 2010. This is unethical, a contempt of court, and a clear violation of the HC's orders."
Zakaria noted that in 2023, the BMC had set up a special internal committee to draft rules for reassessment and prevent inflated tax burdens on citizens. However, nearly two years later, no progress has been made public.
He urged Fadnavis to instruct Municipal Commissioner Bhushan Gagrani to revert to previous billing rates without added charges. Congress MP Varsha Gaikwad has also opposed the tax hike.
Meanwhile, civic officials clarified that the current bills are provisional and may lead to refunds or adjustments in future bills. In December 2023, similar provisional bills were issued, triggering strong public and political opposition, prompting the BMC to send corrected versions later.
