Mumbai: The new property tax exemption for tenants having houses up to 500 square feet(sq.ft) provides no relief to buildings without Occupancy Certificates (OCs).
According to the officials from the Brihanmumbai Municipal Corporation (BMC), like the legal occupants, the residents of non-OC buildings may be exempted of property tax, but they will continue to pay double the amount of taxes for water, sewerage and service charges.
The incumbent saffron government (Bharatiya Janata Party and Shiv Sena) has not changed the earlier decision, giving a major blow to the residents living in buildings without OCs.
Prior to this decision, the corporation recorded property tax collection of nearly Rs 5,500 crore a year. With the new tax exemption, it is expected that the BMC is likely to lose Rs 350 crore per year. This tax exemption is expected to benefit 15 lakh families.
Apart from this, the new tax exemption notification issued by the state government mentioned properties must have records with the BMC to avail of this benefit. Following which it was interpreted, only those buildings which have OCs would get tax exemption. The official clarified buildings without OCs will not suffer.
“The structures should have records with the BMC for tax exemption but it does not mean buildings without an OC will not benefit. We keep other records like property annexure (measurement), therefore, the only proof of record cannot be termed as OC,” said the official.
He reasoned, if records were the only criteria, then the BMC’s tax collection from non-OC buildings to date can be questioned. Interestingly, the implementation of property tax exemption has started from this year, just before the announcement of elections.
In Mumbai there are around 20,000 buildings without OCs, Chief Minister Devendra Fadnavis has said, while giving a reply in the legislative assembly. A question was posed after the fire mishap in Crystal Tower, a highrise building at Parel in which four people died. The building did not have an OC.
