CM Uddhav Thackeray announces complete waiver of property tax for Mumbai homes

During the meeting, BMC commissioner IS Chahal stated that there are 16,14,000 residential properties in Mumbai that are less than 500 square feet, and that the decision will result in a revenue loss of Rs 462 crore for the BMC.

CM Uddhav Thackeray announces complete waiver of property tax for Mumbai homes
CM Uddhav Thackeray announces complete waiver

Brihanmumbai Municipal Corporation (BMC) scheduled for this year, Maharashtra Chief Minister Uddhav Thackeray declared on Saturday that all property tax bills for residential premises measuring up to 500 square feet in Mumbai would be waived completely. The Shiv Sena promised to declare the waiver as part of their political pledge for the 2017 BMC elections, in which it went on to win the most seats. The exemption will take effect in the new fiscal year.

"The Shiv Sena has kept many of the pledges it made in 2017." I had made the vow to Mumbaikars after much thought. Today, we are delivering on that commitment. "I guarantee Mumbaikars that we would take care of your health and well-being if you continue to give us your blessings," Thackeray said during a virtual meeting of officials from the Urban Development Department on Saturday to announce the decision.

He also directed the state administration to ensure that the decision was implemented as soon as possible. Shiv Sena ministers Eknath Shinde and Aaditya Thackeray, Congress Minister Aslam Shaikh, and senior officials from the state government and BMC were present at the meeting.

With elections to the Brihanmumbai Municipal Corporation (BMC) scheduled for this year, Maharashtra Chief Minister Uddhav Thackeray declared on Saturday that all property tax bills for residential premises measuring up to 500 square feet in Mumbai would be waived completely. The Shiv Sena promised to declare the waiver as part of their political pledge for the 2017 BMC elections, in which it went on to win the most seats. The exemption will take effect in the new fiscal year.

"The Shiv Sena has kept many of the pledges it made in 2017." I had made the vow to Mumbaikars after much thought. Today, we are delivering on that commitment. "I guarantee Mumbaikars that we would take care of your health and well-being if you continue to give us your blessings," Thackeray said during a virtual meeting of officials from the Urban Development Department on Saturday to announce the decision.

He also directed the state administration to ensure that the decision was implemented as soon as possible. Shiv Sena ministers Eknath Shinde and Aaditya Thackeray, Congress Minister Aslam Shaikh, and senior officials from the state government and BMC were present at the meeting.

During the meeting, BMC commissioner IS Chahal stated that there are 16,14,000 residential properties in Mumbai that are less than 500 square feet, and that the decision will result in a revenue loss of Rs 462 crore for the BMC. The Mumbai Municipal Corporation Act, 1888, the Maharashtra Education and Employment Guarantee (Cess) Act, 1962, and the Maharashtra (Urban Areas) Preservation of Trees Act, 1975, will all need to be amended as a result of the judgement, he noted.

"The suggestion will be presented to the state cabinet for consideration and possible revisions to these laws." Following that, an ordinance will be issued. "It (the decision) will take effect on April 1, 2022, for the fiscal year 2022-23," said Mahesh Pathak, the Urban Development Department's Principal Secretary.

Following the Shiv Sena's election victory in 2017, the BMC waived the general tax component of the property tax in 2019, drawing criticism for only partially delivering on its pledge. General tax, water tax, sewerage tax, education cess, tree cess, and water benefit tax are among the eight components of property tax. The general tax accounts for approximately 10% to 30% of the overall sum.

The Opposition also brought up the topic of a comprehensive property tax exemption during the state legislature's winter session. "Only the general tax of the property tax bills was cancelled off, not the entire property tax as promised by the erstwhile Shiv Sena chairman and CM Uddhav Thackeray," said Devendra Fandavis, Leader of Opposition, adding that the state government should waive it completely.