The Mumbai Civic Body also known as the Brihanmumbai Municipal Corporation (BMC) has collected Rs 665 crore in the first two quarters of the ongoing fiscal 2022-23, according to the data.
The BMC had set up a target of collecting Rs 7,000 crore, however, in the first two quarters between April 01 and September 26, less than 10% of the targeted revenue from property tax has been collected.
Property tax is the second largest source of revenue for the cash-rich Mumbai Civic Body.
The major sources of income for cash-rich BMC whose annual budget for 2022-23 was over Rs 45,000 crore comes from grant-in-aid on account of compensation in lieu of Octroi that was abolished is Rs 11,429 crore, income from property tax Rs 7,000 crore, from the development plan department the projected income is Rs 3,950 crore, interest on investments Rs 1,128 crore, income from water and sewerage charges to be Rs 1,596 crore.
In 2022-23 between April to September, BMC collected mere Rs 665 crore, which is around 10% higher than the collection of Rs 603 crore at this time of the year in 2021. In 2021-22, the total collection from property tax stood at Rs 5,792 crore.
The shortfall of over Rs 400 crore:
The BMC earlier this year announced relief to residential properties of 500 sq ft carpet or less from paying property tax. This would mean about 16,14,000 citizens will get 100% relief from property tax payment and exemption will cost the BMC around Rs 460 crore, a senior BMC official said.Also read: BMC announces 100% relief on property tax for flats measuring 500 sq ft
According to officials, the collection target of Rs 7,000 crore will be met considering the majority of the collection in the last quarter between January to March.
P Velrasu, Additional Municipal Commissioner of the BMC told Moneycontrol, "This year also BMC will achieve the property tax collection targets fully with the cooperation of citizens."
Is there a downfall in the collection?
The BMC in the budget speech of 2022-23 had said that the drop in property tax collection is temporary and BMC expects property tax collection to come to normalcy in near future.
Besides, Capital Value Revision is deferred considering the Covid-19 situation and without any rise in Property Tax is being collected on the basis of property tax for the year 2019-20. As well, taxpayers are paying 50% of arrears tax as per court order as the final decision is pending in the writ petition against Capital Value-Based Tax System, added the BMC in the budget speech.
Property tax collection:
2021-22: Rs 5,792 crores
2020-21: Rs 5,135 crores
2019-20: Rs. 3735 crores
2018-19: Rs. 4492 crores.
2017-18: Rs 5,087 crore2016-17: Rs 4,845 crore