BMC Considers Property Tax Hike as Collection Soars in FY 2024-25

The Brihanmumbai Municipal Corporation (BMC) is considering a property tax hike of 12.5-13% as part of its planned five-year revision. This would be the first property tax increase since 2015-16, following a significant delay caused by the pandemic, political upheavals, and elections in recent years. The proposed hike comes as the civic body celebrates its highest-ever property tax collection of Rs 6,198.05 crore for the fiscal year 2024-25, just short of its target of Rs 6,200 crore.

Impact of the Proposed Tax Revision

Property tax in Mumbai is one of the most important sources of revenue for the BMC, and the city’s growing infrastructure needs make periodic revisions a necessity. The last planned revision in 2020 was delayed due to the pandemic and political disruptions, including state elections in 2022 and the upcoming Lok Sabha and assembly elections in 2024. However, with the completion of a five-year cycle approaching in 2025, the BMC is now preparing to move forward with the tax adjustment.

The proposed 12.5-13% hike is expected to be discussed in an upcoming meeting before being submitted to the state government for final approval. There is also the possibility that the revised property taxes could be linked to the newly updated ready reckoner rates, a decision which will be finalized at a later stage. Recently, the Maharashtra government increased the ready reckoner rates by 3.39% in Mumbai, which could further impact property values and taxes.

Record Property Tax Collection in FY 2024-25

As a sign of increasing property values and improved compliance, BMC recorded its highest-ever property tax collection for the fiscal year 2024-25. Despite falling just short of its target, the Rs 6,198.05 crore collected marks a significant increase from previous years. Additionally, Rs 178.39 crore was collected, indicating strong enforcement efforts against tax defaulters.

The record collection underscores the BMC’s ongoing efforts to enh