At Rs 3k crore, BMC records lowest property tax mop-up in 10 years

MUMBAI: BMC's finances could take a severe hit with a major shortfall in property tax collection in 2023-24, primarily due to delayed issuance of bills. The municipal assessment and collection department collected just Rs. 3,195 crore in the financial year of 2023-24 from the nine lakh-plus properties in Greater Mumbai. This is the lowest property tax collection in a decade.It had garnered a much-healthier Rs 5,575 crore in the preceding 2022-23.
What has caused concerns in civic circles is that property tax is one of the biggest sources of revenue for BMC.
BMC set a target of Rs 6,000 crore in 2023-24 but had to whittle it down to Rs 4,500 crore. The final tally of Rs 3,195 crore by March end, though, was way below its expectations.

Of the Rs 3,195 crore, H-East ward (Bandra, Khar, Santacruz East) recorded the maximum tax collection at Rs 336 crore. K-East ward (Andheri East) recorded the second highest collection at Rs 317.5 crore followed by G-South (Worli, Prabhadevi, Parel) at Rs 257.1 crore.
Officials said of the nine lakh-plus properties, around 3.6 lakh are exempted from property tax as these measure less than 500 square feet each. So, BMC's assessment and collection department collected Rs 3,195 crore from 5.9 lakh properties in Greater Mumbai.
Officials said low tax collection till March 31 was because property tax bills were issued late, on Dec 26, 2023. This was along with the increase in tax rate that was approved by the state govt of 17.5% in Jan 2023.
But following strong opposition to the hike, the chief minister instructed the municipal chief to issue bills without the increased component.
"New bills therefore were freshly issued only around Feb 2024. Bills once issued give property owners a 90-day period for payment; until then no penalty can also be issued too. Citizens have time till May 2024 for payment," said an official.
Another reason for the low collection is election duty for which several civic officers from the assessment department have also been roped in.
At a time when BMC's liabilities stand at an all-time high of Rs 2 lakh crore with multiple infrastructure projects in the works, this reduction is likely to hit its finances.
SP MLA Rais Shaikh said, "With BMC revenue taking such a hit it is likely that payments to be made to contractors for various civic works to be done may not happen well within time too." RTI activist Anil Galgali pointed to BMC's dip in revenue leading to several project works coming to a halt. Former Bandra Congress corporator Asif Zakaria who had first flagged off the hike in tax bills in Dec 2023 said it was indecision on part of BMC that has led to low tax collection.