Recover property tax dues from govt, pvt firms first: BJP to BMC
Mumbai: A day after BMC increased property tax rates by up to 15% in bills raised for over nine lakh properties for 2025-26, former BMC opposition leader Ravi Raja of BJP criticised the civic body for burdening Mumbaikars while failing to recover massive pending dues.
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Raja pointed out that BMC is yet to collect Rs 14,320 crore, including penalties, in outstanding property tax fr-om both govt and private entities, including Mumbai Metropolitan Regional Development authority, J Kumar Infr-aprojects Ltd, Raghuvanshi Mills, and Kanakia Spaces Realty. "Instead of targeting citizens, why not recover what's already due?" he asked.
Defending the hike, BMC said that it was the first revision in over a decade and was justified.
"BMC has issued revised property tax bills reflecting an average increase of 15.89%. However, BMC clarifies that it has not introduced any changes or hikes in the structure or rates of property tax. The revised bills are a result of changes in the Ready Reckoner rates for the financial year 2025–26, which are legally mandated to be reflected in the bills. These revised bills have been issued in accordance with legal provisions.
As per Section 154 (1C) of the Mumbai Municipal Corporation Act, 1888, there is a legal requirement to revise the capital value of properties every five years," BMC stated. "The last revision was carried out in 2015. However, in 2020, amid the Covid pandemic, the revision was deferred on humanitarian grounds, and the law was amended accordingly. Thus, the current revision in property tax bills is taking place after a gap of 10 years."
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A special notice is attached to the revised tax bills, which includes a note stating: "The capital value of the property is provisional." This means the final tax amount is subject to court orders and may change. If a higher amount has been charged, the excess will be adjusted in subsequent bills. Properties measuring less than 500 sq ft are exempt from property tax, and hence no charges are being levied on these properties in the revised bills.
The exemption strictly applies to the carpet area — not built-up or super built-up measurements — and is limited to residential properties.
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