Mumbai Property Tax: There is some good news for Mumbai residents who must pay property tax. In a tweet, ANI reported that the Mumbai Mayor has made this decision. “There would be no increase in property tax in Mumbai as long as the Covid issue persists. We don’t know how long it will take, but we will not burden Mumbaikars by raising the property tax until then,” stated Mumbai Mayor Kishori Pednekar.
Pednekar reiterated that there will be no increase in property taxes in Mumbai as long as the Covid-19 scenario persists. “We don’t know how long it will take, but we will not burden Mumbaikars by raising the property tax until then,” she added.
Previously, it was thought that Mumbai property owners would have to pay a higher tax this year. Property tax is collected using the year’s most recent ready reckoner rates. The Ready reckoner rates, which provide the true market value of the immovable property such as land, residential, commercial, and industrial property, are one of the criteria used to calculate property tax. The Maharashtra government planned in 2020 to reduce the stamp duty on sale deed documents by 3% between September 1 and December 31, 2020, and the relaxation was to continue with a 2% reduction from January 1 to March 31, 2021.
The Brihanmumbai Municipal Corporation’s (BMC) assessor and collector department tabled the request for a property tax increase – to be in effect from April 1, 2021, to March 31, 2025 – before the Standing Committee on Wednesday for final approval. The proposal is based on April 1, 2021, ready reckoner (RR) rates. The present property tax rates were predicted to rise to 14% as a result of the hike.
The RR rate is the government’s minimum property value, which aids in determining the genuine market value of immovable properties such as land, residential, commercial, and industrial.
However, the idea was put on hold after opposition leader Ravi Raja objected to it and requested additional time to review it.
The most recent revision to property tax rates occurred in 2015.
This latest judgment on property tax in Mumbai is expected to bring some comfort to property owners, especially at a time when Covid-19 is affecting individuals’ financial positions.