Mumbai: BMC Triumphs with Record Property Tax Collection of Rs. 3,195 Crores
Mumbai, 3rd April 2024: In an impressive display of determination, municipal authorities in Mumbai have diligently collected a staggering sum of Rs. 3,195 crores in property taxes by the stroke of midnight on March 31st. This feat was particularly notable in the final four days leading up to the deadline, during which Rs. 836 crores were recovered, largely attributable to a strategic focus on addressing major defaulters. Notably, the H Eastward (encompassing Santacruz, Khar, and Bandra East) emerged as the top contributor, recording a remarkable collection of Rs. 336 crores.
However, despite these commendable efforts, the property tax landscape also reveals a concerning deficit of Rs. 1,300 crores for the fiscal year 2023-24, juxtaposed against the previous year’s collection of Rs. 4,492 crores.
Challenges and Solutions in BMC’s Property Tax Collection
The BMC’s property tax collection has faced multifaceted challenges, including exemptions for residential properties under 500 sq. ft. and a lack of tax hikes over the past half-decade. Moreover, the implementation of new tax calculation methodologies, coupled with legal intricacies, significantly hampered revenue collection in 2023-24. Consequently, the initial target was revised from Rs. 6,000 crores to Rs. 4,500 crores, with bills dispatched on February 27th.
To counteract these obstacles, the BMC strategically targeted major defaulters, yielding impressive results. Approximately Rs. 2,500 crores were recovered within a month, underscoring the efficacy of this approach, according to municipal sources.
Ward-wise Breakdown of Property Tax Collections
The distribution of property tax collections across Mumbai’s wards paints a diverse picture. H East ward led the charge with a substantial collection of Rs. 336.45 crores, closely followed by K East (Jogeshwari, Andheri East) with Rs. 317.48 crores, and G South (Worli) with Rs. 257.11 crores. In contrast, the Island city reported the lowest collection at Rs. 678.42 crores, while the eastern and western suburbs amassed Rs. 917.05 crores and Rs. 1,590.09 crores, respectively.
Mitigating Billing Delays and Future Projections
Acknowledging the delay in bill dispatch, the BMC has extended leniency by waiving the 2% monthly interest until May 25th for taxpayers. Moreover, revenue collected post-April 1st will be allocated to the current financial year, 2024-25, as per civic authorities. This strategic manoeuvre aims to streamline revenue management while fostering taxpayer compliance and fiscal sustainability.
