Eyeing on BMC Elections: Maharashtra govt waives off property tax for 500 sq ft residential properties

Decision will benefit owners of over 16 lakh houses below 500 sq ft in BMC limits, says Eknath Shinde

Ahead of the Mumbai Municipal Corporation elections due next month, on Saturday, the Maharashtra government announced that property tax on residential units of up to 500 sq ft, located within the Mumbai municipal area limits, will be waived off. This will benefit nearly 16 lakh houses within BMC limits. The administration has been asked to implement the decision with immediate effect.

Maharashtra Chief Minister Uddhav Thackeray announced the decision at a meeting of the Urban Development Department earlier in the day, an official release said.

CM Thackeray had chaired a virtual meeting with the Urban Development Department, Mumbai District Guardian Minister Aslam Shaikh, Mumbai Suburban District Guardian Minister Aaditya Thackeray, Mayor Kishori Pednekar, and Chief Secretary Debashish Chakrabarty.

Urban Development Minister Eknath Shinde said that the decision will benefit owners of over 16 lakh houses below 500 sq feet in Brihanmumbai Municipal Corporation (BMC) limits, adding that Shiv Sena, which rules the BMC, has fulfilled an important assurance it gave ahead of the 2017 BMC elections.

He said that with the waiver, the BMC will incur a revenue loss of Rs.1042 crores in the current financial year.

The opposition had raised the issue about waiving off the property tax of residential properties of 500 sq ft that includes general tax and other service taxes.

Property tax comprises eight components, including general tax, water tax, sewerage tax, education cess, tree cess, and water benefit tax. The general tax constitutes 10 percent to 30 percent of the total amount.

The Shiv Sena faced a lot of flak after it waived off the general tax component and not the entire property tax as promised in its manifesto during the 2017 Mumbai civic polls.

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