Mumbai, 13th January 2022: The Maharashtra cabinet has approved a property tax exemption for Mumbai residents with homes up to 500 square feet on Wednesday.
This action, which is being hailed as a boon for Mumbai residents ahead of the Brihanmumbai Municipal Corporation (BMC) election, will benefit roughly 16 lakh residential properties.
This exemption does not apply to homes larger than 500 square feet (46.45 sq m). The government will shortly draft an ordinance proposing a modification to the Mumbai Municipal Corporation Act to allow property waivers for residential units to be implemented.
Chief Minister Uddhav Thackeray declared on January 1, 2022, that property taxes on residential units of up to 500 square feet placed inside the Mumbai municipal area limits would be waived.
This proposal will take effect in January 2022, according to the Maharashtra government. The urban development department had originally proposed that the waiver take effect in April 2022, but the government was eager to provide this benefit before the forthcoming BMC elections.
Due to this decision, BMC is expected to lose revenue of Rs 462 crores per year. For 2021-22, the BMC has projected the property tax collection at Rs 7000 crore.