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The Brihanmumbai Municipal Corporation (BMC) rcently confirmed that property tax rates have not increased; the rise in tax bills stems from updated ready reckoner (RR) rates for FY 2025-26. RR rates, revised for the first time in a decade, set minimum property values for taxation. An average 15.89% uptick in tax bills is also due to a statutory capital value revision under Section 154(1)(c) of the Mumbai Municipal Corporation Act-last updated in 2015, with the 2020 revision delayed due to COVID-19. The BMC also announced a temporary suspension of solid waste management fees after intervention by Maharashtra's Chief Minister and Deputy CM. Residential units under 500 sq. ft. remain exempt from property tax. As civic elections approach, property tax policies and enforcement could become a key issue, with public focus on fairness and accountability in Mumbai's civic administration.
The Brihanmumbai Municipal Corporation (BMC) clarified earlier this week that there has been no increase in property tax rates, stating that the noticeable surge in tax bills was a result of adjustments made to the ready reckoner rates applicable for the financial year 2025-26. Advertisement
These ready reckoner rates, also referred to as guideline values, represent the minimum values assigned to properties by the government across various areas in Maharashtra for taxation purposes.
In an official statement, the BMC informed that it had decided to temporarily halt the implementation of solid waste management fees. This move followed interventions from Maharashtra Chief Minister Shri Devendra Fadnavis and Deputy Chief Minister Shri Eknath Shinde, who had raised concerns that the revised tax structure would unfairly strain city residents.
The civic body also reiterated that residential units measuring under 500 square feet continue to remain exempt from property tax obligations.
Elaborating further, BMC officials explained that the average 15.89% increase in current property tax bills was due to a statutory requirement under Section 154(1)(c) of the Mumbai Municipal Corporation Act, which mandates a revision of property capital values every five years. The previous scheduled update in 2020 was deferred due to the impact of the COVID-19 pandemic, with the last revision having taken place in 2015.
The Maharashtra government had revised the ready reckoner rates at the end of March, marking the first such revision in a decade. As per existing regulations, any changes in the ready reckoner rates trigger an automatic revision in property tax calculations.
The BMC currently collects property tax annually from over 900,000 property owners across Mumbai and its suburban areas.
As Mumbai braces for its civic polls after a prolonged delay, the issue of property tax and revenue accountability could well become a focal point of political discourse. The administration may now be pressed to demonstrate both fiscal fairness and stronger action against long-standing defaulters in order to regain the trust of its citizenry.
Source - PTI
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