Amid protests, new property tax system finds some fans

Even as the new property tax system of the Brihanmumbai Municipal Corporation is receiving flak from almost all quarters, it has come as a pleasant surprise for some residential housing associations.

Of the 1,94,734 property tax bills sent by BMC, complaints have been received against 3,360. The most, 2,854, are from the island city.

The new capital-value system bases taxes for all buildings (old and new) on ready reckoner (RR), against older rateable value system based on rent.

Residents of a cooperative housing society in Mulund East were in for a surprise when the annual property tax they pay came down by over Rs 3 lakh, after the new system was implemented.

The society, in existence since 2007, had been paying an annual property tax of Rs 10,29,406. It has come down to Rs 7,04,846 per annum.

"As the civic body provides the same services to citizens in old as well as new flats, the discrimination was too high (in the rent-based system). As most residents in relatively older buildings pay little tax, the burden shifted on newly constructed houses and ultimately an exorbitant tax was levied on newly constructed buildings like ours," said a resident of the society.

Residents of Mumbai had been taken by surprise over a period of a month as housing societies received hefty property tax bills, which the city's civic body is charging with retrospective effect from 2010.

The bills reached a whopping Rs1 crore for some South Mumbai properties. Citizens reacted calling it unjust and unfair.

Following protests, the civic administration clarified that only 19 per cent of the 14.2 lakh residential units and 25 per cent of the 3.77 lakh non-residential properties will shell out more.

While 53 per cent of residential properties will see no change in their current rate, tax will come down for 27 per cent of the properties.

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