Brihanmumbai Municipal Corporation(BMC) on February 3 announced 100% relief on property tax for flats measuring 500 sq ft of carpet area.
"About 16,14,000 citizens will get 100 per cent property tax relief. The amount of exemption to citizens is to the tune of ₹462 crore per annum," Mumbai municipal commissioner Iqbal Singh Chahal said in his budget speech.
BMC, the richest civic body in the country, presented a budget of ₹45,949.21 crore for the year 2022-23, ahead of the civic elections. The budget estimates are 17.70 per cent more than the last fiscal, when the BMC had presented ₹39,038.83 crore budget.
On January 1, Chief Minister Udday Thackeray had announced a decision to waive the property tax for the residential units of up to 500 square feet, located within the Mumbai municipal area limits.
According to Niranjan Hiranandani, vice chairperson, (National) NAREDCO and MD, Hiranandani Group, “The MCGM Commissioner In his budget presentation has formalised what was announced by the chief minister. the move augurs well for affordable housing and is a positive for buyers of homes sized 500 sq ft or less in Mumbai. It will provide a fillip to construction of new homes in this segment. I look forward to a scenario where this can be extended to other cities in the state, as also positively consider the suggestion being made by consumer forums, about extending this to homes sized 750 sq ft.”Union Budget 2022-23 has not announced specific demand-side incentives, the Maharashtra government’s announcement on the property tax waiver in the affordable housing segment infuses a fresh lease of life for end users and prospective homebuyers. A booster to buoy the market sentiment, the likely revenue loss should be offset by incremental sales volumes in the affordable segment,” said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.