With new rules, BMC gain 15 per cent profit in property tax collection

BMC gain 15 per cent profit in property tax collection

After implementing new rules and modifying old rules, BMC estimates that it will gain 15 per cent profit in property tax collection which will be approx Rs 4,400 crore.
The cash rich Brihanmumbai Municipal Corporation is excepting that for the years 2015, it will gain 15 per cent gain or profit in property tax in all over the city with the revised rules for 2015 to 2020. The revised set of new rules also fixed the increased rates for residential as well as commercial properties in all over the categories and it was presented to the group’s leaders of the corporation on the Monday. However; the property tax is planning to represents the new rules in front of standing committee on Wednesday. Whereas; while cashing the money BMC estimates the property tax collection of Rs 4,400 crore. he Brihanmumbai Municipal Corporation has also done all the calculation as per the new formula which refelt the change in the property tax collection and opposed by the most of the politicians and citizens in all over the board in last year. Apart from the new rules the BMC will also revised the current slabs that is expected to grow by 40 per cent on an average in the property tax collection.
According to the statement of senior civic official who is working in the assessment department, we have faced the many problems after the implementation of capital value based system, however; we have identified few of the most common glitches and revised the same with new rules. When this system was introduced in the year 2010, it was under the revision for every 5 years and so the new set of rules are applicable till 2020 after the approval. In the revision, BMC has done and use the new formula to collect the property tax.
The civic body of BMC has proposed the new set of rules to calculate the property tax such as; Ready Reckoner Rate * carpet area * 1.2%” in July 2014. However; this proposal was rejected in the same year by standing committee members and they criticized the civic body and said that they get failed to relieve the burden on the residential as well as commercial property owners in Mumbai. Whereas; after the sometime same civic body proposed the new set of rules to calculate the property tax which was as; RRR * carpet area, same was confirmed by the senior civic official. The more he added that in primary stage the rule was classified for 21 different set of categories that has made the assessment with very difficulty. But in new set of rules it was brought down to the 6 different set of categories to make the property tax calculation simpler and easier.
In the September 2014, with more number of petitions Bombay High Court said that BMC had wrongly calculated the property tax as per the built-up area rules, but after that civic body has formed the committee to review the new set of rules which is expected to come in the existence and effect from April 2015.