Latest news with #SWM
Hindustan Times
2 days ago
- Business
- Hindustan Times
Garbage tax deferred amid property tax hike
MUMBAI: The civic administration has deferred its much-debated fee on solid waste management, or garbage tax, in view of the increase in property tax. The user fee was meant to cover the daily collection of solid waste from individual homes as well as commercial and industrial establishments. Proposed in April, the fee ranges from ₹100 to ₹7,500, depending on the size and nature of the establishment. It was to be levied under the revised Cleanliness and Sanitation Bye-Laws 2025. However, on Wednesday, the Brihanmumbai Municipal Corporation (BMC) announced an increase in property tax of nearly 16%. In view of this additional financial burden on citizens, chief minister Devendra Fadnavis and deputy chief minister and urban development minister Eknath Shinde stepped in to defer the proposed user fee on solid waste collection. It was to be added to the property tax bills. Meanwhile, the BMC has begun issuing revised property tax bills for financial year 2025-26, reflecting an average increase of 15.89%. The civic body clarified that the increase is not the result of any change in tax structure or rates by the BMC, but a statutory revision based on updated ready reckoner rates, which determine the capital value of properties. Under Section 154 (1C) of the Mumbai Municipal Corporation Act, 1888, the capital value of properties must be revised every five years. Although this mandate was implemented in 2015, the scheduled 2020 revision was postponed due to the Covid-19 pandemic. Legal amendments delayed the process, resulting in the current revision taking place after a ten-year interval. Each revised tax bill now includes a special notice stating, 'Capital valuation of the property is provisional, indicating that the final tax amount is subject to pending court rulings,' said a senior civic official. Any changes will be adjusted in future bills, either as a refund or additional charge. To protect low-income property owners, the BMC has reiterated that properties measuring less than 500sq ft will continue to be exempt from property tax. These properties have not been issued revised bills, nor will they be subject to the SWM fee, if and when it is imposed. The property tax increase has been criticised, mostly from former corporators and other political leaders, who said the increase was unfair to citizens. In a letter to municipal commissioner Bhushan Gagrani, former leader of the opposition Ravi Raja condemned the administration's inability to recover dues from large defaulters while burdening regular taxpayers. He said property tax has become the BMC's primary source of income after the abolition of octroi, formerly a major revenue stream. According to Raja, while the administration has shown some efficiency in tax collection, it still fails to recoup massive outstanding dues from major property owners. At present, 481 major defaulters collectively owe the BMC a staggering ₹14,320 crore in unpaid property tax. Prominent among them are Raghuvanshi Mills, Taj Lands End Ltd, Seven Hills Healthcare, MMRDA, Bombay Cricket Association and J Kumar Infra, according to the BMC. Gaothans hit with 40% property tax hike A 40% hike in property tax for gaothan properties, traditional or village settlements within the city, has triggered strong opposition. Civic activist advocate Godfrey Pimenta called it 'illegal', demanding its immediate withdrawal. In a letter to civic chief Bhushan Gagrani, Pimenta noted that his latest six-month bill amounted to ₹19,885, a 40% increase over the earlier rate. He argued that this violates the provisions of the Mumbai Municipal Corporation Act, 1888, which caps such increases at 14.52%, as approved by the civic Standing Committee in 2015. Pimenta also cited state ordinances protecting small residential units (under 500sq ft) from tax increases beyond the 2015 level, and asserted that even as administrator, the municipal commissioner cannot exceed the limits set by law. He has demanded a rollback of the hike and adherence to the 14.52% cap, warning against what he called an 'overreach of the civic body'.
Indian Express
2 days ago
- Business
- Indian Express
BMC defers decision to impose SWM charges after property tax bills hike
A day after the property tax bills that were issued by the Brihanmumbai Municipal Corporation (BMC) showed a rise up to 20%, the civic administration on Thursday announced deferment of the proposed solid waste management (SWM) charges. The BMC's move came following huge uproar on social media where citizens criticised the move of increasing taxes abruptly. The BMC's decision of imposing the SWM user charges was also criticised by the opposing Shiv Sena (UBT) and Congress. The civic administration had proposed implementation of the SWM charges in its 2025-26 budget. The fees ranged between Rs 100 to Rs 7,500 depending on the entities on which it would be imposed. The civic body had earlier aimed towards generating Rs 687 crore in its revenue. 'Taking into account the additional financial burden on citizens due to the revised property tax bills, Chief Minister Devendra Fadnavis and Deputy Chief Minister and Urban Development Minister Eknath Shinde recommended a reconsideration of the proposed Solid Waste Management (SWM) charges. Accordingly, BMC has decided to defer the implementation of SWM charges,' the BMC said in a statement issued on Thursday. The proposed user fee would be implemented on both residential and commercial properties. The minimum fee of Rs 100 would be imposed on residential buildings that would be less than 50 square meters, while the maximum amount of Rs 7,500 crore was to be imposed on hotels, banquet halls and commercial properties having a floor size of 3,500 square meter or more. After announcing the draft of this new policy, the civic body had invited suggestions and objections from citizens, with civic officials saying that so far 376 suggestions and objections were issued by the authorities. Meanwhile, the increase in property tax rates took place following the hike in ready reckoner rates (RRR) imposed by the civic administration. The state government for the ongoing 2025-26 financial year has increased the RRR by an average 3.88% across the state. Meanwhile, Mumbai has recorded an increase in RRR by 3.39% – slightly below the state average. Property tax is a cess charged by the BMC which comprises multiple components. While the larger aspect of this cess is determined by the ready reckoner rate (RRR) or the minimum property value determined by the government for revenue collection, the remaining valuation is determined by factors like age and condition of the property and sewerage charges among others. As a result, an increase in RRR leads to automatic increase in property tax. Outstanding property tax due A day after the hike in property tax bills, the BMC's data shows that as many as 481 entities owe the civic body an outstanding tax worth Rs 14,320 crore inclusive of private as well as government properties. Of the total outstanding dues, Rs 1,090 crore is owed by the Mumbai Metropolitan Region Development Authority (MMRDA), out of which Rs 13.39 crore is owed by the Azad Nagar Metro station, while Rs 943 crore is owed by J Kumar infraprojects private limited – a private construction firm which is currently undertaking several infrastructure projects in Mumbai. Rs 103 crore is owed by the Mumbai Metro Rail Corporation Private Limited (MMRCL). The University of Mumbai owes Rs 84 crore in taxes while the Airport Authority of India (AAI) owes Rs 45 crore to the BMC. Civic officials maintained that several of these private parties have been using the BMC's plots for setting up casting yards for various infrastructure projects that have been taken up by the government authorities. 'We have sent letters and notices in each of these organisations and entities. In many cases, these matters are stuck in arbitration considering multiple stakeholders are involved. As a result the outstanding tax charges couldn't be recovered. In some cases we attach the properties and confiscate them till the dues are paid,' an official said.
Time of India
3 days ago
- Business
- Time of India
MCM set to extend garbage pickup to new sector condominiums
Gurgaon: MCM is planning to extend waste collection services to highrise buildings and condominiums within new sectors, addressing concerns about unauthorised waste disposal by the private sanitation agencies operating in these buildings. Rather than implementing door-to-door collection, the civic body intends to allocate waste collection vehicles to these condominiums. The arrangement will allow the residential complexes' staff or agencies to deposit their collected waste into these MCM vehicles. Subsequently, these MCM vehicles will transport the collected waste to designated collection points for further processing. According to officials, this system will enable better monitoring and control of waste disposal, preventing unauthorised dumping on roads and in public spaces throughout Manesar. The civic body is currently engaged in waste collection in the villages of Manesar. The residential gated societies are categorised as bulk waste generators, so they are responsible for managing their own waste. However, the MCM officials said that the objective of extending services is to keep a check on unauthorised dumping and ensure the processing of solid waste. "We are planning to expand our waste collection services to include high-rise buildings to monitor and prevent unauthorised waste disposal by various agencies operating within these residential complexes. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bolsas nos olhos? (Tente isso hoje à noite) Revista Saúde & Beleza Saiba Mais Undo As bulk waste generators, these high-rises are accountable for proper waste disposal at designated locations as mandated by the SWM rules, 2016. However, their failure to maintain oversight often results in illegal dumping. So, it is like a monitoring system to address this issue," said the MCM additional commissioner Jitender Kumar. "Due to operational constraints, the corporation cannot provide door-to-door waste collection services within condominiums. As an alternative solution, vehicles will be provided to these residential complexes to facilitate the transport of collected waste from doorsteps to designated collection and processing points," he added.
Indian Express
3 days ago
- Business
- Indian Express
Hike in ready reckoner rates leads to rise in property tax bills by 8-20 % in Mumbai
Maharashtra government's decision to increase ready reckoner rates in all major municipalities of Maharashtra ahead of the upcoming civic polls has resulted in an increase in the overall property tax bills in Mumbai by a margin of 8-20 per cent – a first in the last ten years. Mumbai's Municipal Commissioner Bhushan Gagrani, however, clarified that there has been no revision on Mumbai's existing property tax rates. Property tax is a cess charged by the Brihanmumbai Municipal Corporation (BMC) which comprises multiple components. While the larger aspect of this cess is determined by the ready reckoner rate (RRR) or the minimum property value determined by the government for revenue collection, the remaining valuation is determined by factors like age and condition of the property and sewerage charges among others. 'The BMC hasn't increased the property tax rates. In Mumbai, property tax is directly linked with RRR. Therefore, the government's decision of hiking the overall increase in RRR has impacted the property tax rates in Mumbai resulting in an 8-20% increase across municipal wards. All the components like sewage charges stay the same in the bill. The new tax rates will be reflected in the bills that are being issued in the current financial year,' Gagrani told The Indian Express on Tuesday. Property tax is one of the key sources of revenue for the BMC. For the financial year 2024-25 the BMC collected property tax amounting to Rs 6,195 crore – making a 20% jump from the previous fiscal year. The Mumbai's Municipal Corporation Act states that the BMC can increase property tax after every five years. However, the tax rates have not been revised since 2015. In 2020, the civic administration was supposed to increase the rates however, the decision was deferred following the pandemic outbreak and has been pending since. Meanwhile, this year in the civic budget, the BMC had introduced a new cess called Solid Waste Management (SWM) charges. This cess will likely come into effect from the 2026-27 financial year. Meanwhile, former elected representatives have criticised the BMC administration. Former Congress corporator from Bandra Asif Zakaria said that all property tax bills being issued are ad hoc and that the BMC clarifies the same in the footnote of each bill. 'The bills that BMC issues are ad hoc in nature, therefore what is the need of issuing them in the first place? The courts have already asked BMC to formulate a committee and work on the new tax rates. However, that's not happened yet,' Zakaria said. 'The Mumbai Municipal Act states that after every five years, the BMC can revise and charge tax as per capital value or up to 40% of the previous year's tax or whichever is less. Since the capital value will always be higher, it clearly negates the justification of raising the tax rates on the basis of RRR,' Zakaria said. On March 31, the state government increased the RRR for the ongoing 2025-26 financial year by an average of 3.88 per cent across the state. Meanwhile, Mumbai has recorded an increase in RRR by 3.39 per cent — slightly below the state average, followed by 3.36 per cent in rural areas and 3.29 per cent in influence zones. Municipal corporations other than Mumbai have recorded an average increase of 5.95 per cent.
New Indian Express
7 days ago
- Politics
- New Indian Express
BNP demands BBMP withdraw unfair solid waste fee amid double billing complaints in Bengaluru
BENGALURU: Bengaluru Navanirmana Party has claimed that over 2,800 people across the city have expressed solidarity with them in objecting to BBMP in its campaign titled #IWontPay, against the new solid waste management user fee on citizens who neither generate the waste nor receive BBMP's services. 'This is exploitation. How can BBMP collect a fee without even knowing who should pay and who shouldn't? said Srikanth Narasimhan, founder of BNP. He said the 'bulk-waste generator' exemption was introduced around April 20, 2025, after backlash from citizens. By this time, thousands of residents who live in apartments classified as bulk-waste generators, had already paid the SWM fee. Many have made double payment, one to private vendors, and another to BBMP for doing nothing. Smaller apartment complexes (under 100 units) that use empanelled vendors are neither recognized as bulk generators nor given clarity, which again leads to double billing. Vacant plot owners have also been charged SWM fee despite producing no waste. 'How can BBMP justify billing people for a service it doesn't provide? There's no accountability, no communication, not even basic logic,' said Poongothai Paramasivan, Governing Council member of BNP. She added that without an elected BBMP Council, the government is unilaterally imposing new charges like parking fees and garbage user fees. BNP has submitted formal letters to Deputy CM DK Shivakumar, BBMP Chief Commissioner Maheshwar Rao, and Revenue Special Commissioner Munish Moudgil, demanding withdrawal of the SWM user fee, and full refund or adjustment of wrongly collected fees for all who have paid this year.
