Officials collecting property tax (Image used for representation purpose only) | File Photo
With only 12 days remaining in the 2024-25 financial year, the BMC has successfully collected Rs. 5,392 crores in property tax, moving closer to its target of Rs. 6,200 crores. The civic Assessment and Collection(A&C) department’s action against major defaulters has played a key role in boosting revenue this year. The property tax collection for the entire 2023-24 financial year had totaled just Rs. 3,195 crores by March 31, 2024.
The municipal corporation’s property tax collection has faced challenges in recent years. Despite being the second-highest revenue source, the decline in collection is largely due to exemptions for residential properties up to 500 sq ft and the lack of a tax revision since 2015-16.
Legal complexities associated with new methods of property tax calculation further hindered revenue collection for the BMC in the 2023-24 financial year.Although the initial target for property tax collection was Rs. 6,000 crores, the BMC experienced a shortfall of Rs. 1,305 crores, primarily because tax bills were only sent in February 2024.
To mitigate this, the civic body extended the payment deadline by three months to May 25, 2024, allowing citizens to pay without incurring late fees. The BMC has since been aggressive in pursuing defaulters, resulting in 87% of the revenue being collected so far.
An official from the A & C department expressed confidence in collecting the remaining Rs. 800 crores, noting that the BMC collects property tax from over 9 lakh properties each year.
