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Mumbai: BMC had Rs 3,000 crore in property tax to collect, says CAG
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Mumbai: BMC had Rs 3,000 crore in property tax to collect, says CAG
Publish on : 2022-09-05 11:45:39
The comptroller and auditor general (CAG) of India has said property tax collection had a low efficiency of 53% across urban local bodies (ULBs) in Maharashtra from fiscal 2015-16 to 2019-20, and the BMC was among the worst performers with collection touching barely 28%. Civic officials said BMC's total outstanding property tax was Rs 3,048 crore. MUMBAI: The comptroller and auditor general (CAG) of India has said property tax collection had a low efficiency of 53% across urban local bodies (ULBs) in Maharashtra from fiscal 2015-16 to 2019-20, and the BMC was among the worst performers with collection touching barely 28%. Civic officials said BMC's total outstanding property tax was Rs 3,048 crore. Officials said they have increased their property tax recovery over the last few years and barring the two years of the Covid pandemic, the BMC had met its property tax collection targets. BMC said most of its property tax dues from large property owners include from developers and some state and central government agencies. In 2021-22, BMC had revised its property tax target from Rs 7,000 crore to Rs 4,800 crore due to the pandemic. "We have made a list of defaulters and large-scale attachment and auction of properties will soon begin. We are going to ensure that dues are recovered except for those amounts that are under dispute in court," said Sunil Dhamne, joint municipal commissioner. According to BMC officials, there are 4.2 lakh property owners in Mumbai. Around 1.37 lakh properties will get 100% relief from property tax payment with the state government waiving property tax of those living in below 500 sq ft homes. This will cost the BMC around Rs 462 crore per year. While the state government had announced this decision in 2019, only the general tax component was exempted and the entire tax was only exempted from January 2022. So, the BMC has now decided to recover pending property tax dues for 2019-20 which is likely to generate Rs 300 crore.

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