Mumbai: BMC's property tax inflow for six months just 10% of year's target

However, the property tax collection for the same period in the last financial year was Rs 603 crore. According to officials, collection in the tax mostly picks up towards the end of the financial year, so there is no reason for concern yet.

MUMBAI: The BMC's property tax collection in the first six months of the current financial year is Rs 665 crore, just 9.5% of the Rs 7,000-crore target it had set and announced in its budget for 2022-23.

However, the property tax collection for the same period in the last financial year was Rs 603 crore. According to officials, collection in the tax mostly picks up towards the end of the financial year, so there is no reason for concern yet.

At present for the BMC, the compensation that is being received in lieu of octroi is one of its biggest sources of revenue. This is known to be around Rs 10,000 crore each financial year, which the Centre transfers to the state which then gives it to the BMC.

Property tax is the second biggest source of revenue for the BMC. In 2021-22, the total collection stood Rs 5,792 crore, exceeding the Rs 5,400 crore target by Rs 392 crore. A civic official said, "Last financial year, we were able to surpass the tax target, and we are positive about it this year too.

In the pandemic year, property tax collections had taken a big hit as data shows the revenue in 2019-20 was only Rs 3,735 crore.

Former city fathers have alleged that with no body of corporators in place at present, the administration has a free hand and collections which could have picked up pace further could slow down owing to it being an election year.

NCP leader Rakhi Jadhav, a former corporator from Ghatkopar, said, "As corporators, during various meetings like general body and standing committee we would regularly take up issues concerning the city. This would ensure there is accountability as the administration would be forced to get back with replies. However, now with elections delayed and an administrator in place, there is no forum left to raise such issues."

Source: realty.economictimes.indiatimes.com

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