State Urban Development Minister Eknath Shinde told the state assembly on Tuesday that the BMC lost revenue worth Rs 2,000 crore as property tax in the city has not been hiked since the pandemic began.
After he pointed out that the state had not yet waived property tax for dwellings below 500 square feet in the city in accordance with the Shiv Sena’s election promise, Shinde said this was under consideration, and the state would soon take a decision.
“Every five years, there is a hike in the property. This time it would have been a 17% hike. However, given the pandemic, it was unfair to hike the tax. Chief Minister Uddhav Thackeray agreed to this. The revenue loss to the BMC is Rs 2,000 crore over the last two years,” said Shinde.
Leader of Opposition and former Chief Minister Devendra Fadnavis pointed out that the Sena had not fulfilled its election promise of exempting dwellings of less than 500 square feet from property tax. “A total waiver was promised but only a small amount was waived,” he pointed out.
The waiver has only been granted on the general tax component of property tax for homes below 500 square feet. There are 1.85 lakh dwelling units in the city that are under 500 square feet.
Responding to the BJP, Shinde said, “We agree that there should be a complete waiver on property tax for dwellings below 500 square feet and a decision on this will soon be taken.”
In the run-up to the BMC polls in 2017, the Shiv Sena had in its manifesto promised to abolish property tax for all flats up to 500 square feet in the city. It had also announced that dwellings between 500 and 700 square feet would get tax rebates. However, a waiver was subsequently granted only for the general tax component of property tax.