Mumbai: The BMC has initiated a survey to assess water usage for unmetered properties under 500 sq. ft. Based on the findings, a comprehensive policy will soon be drafted to impose charges for recovering water and sewerage taxes from residential properties with a carpet area of less than 500 sq. ft, as announced by the BMC in its budget for the fiscal year 2025-26.
Previously, these charges were included in the property tax. However, in February 2022, the state government passed an ordinance granting a property tax waiver for residential units up to 500 sq ft in size. Since then, the exemption has led to a revenue loss running into crores.
To recover this deficit, the BMC had announced a plan to levy separate charges for water and sewerage from these properties, as their property tax has been waived. A survey has already been conducted across nine civic wards to assess water usage in unmetered properties. As a result, 54,226 properties will fall under the new tax regime for water and sewerage charges.
While suburban properties with water meters already pay for water usage, nine wards in the island city have many residential properties under 500 sq. ft. that benefit from the property tax exemption. As these properties still use water and sewerage services, the issue of who will pay the charges arose.
To address this, the BMC decided to implement separate water and sewerage charges, as announced in the 2024-25 budget. The 2025-26 budget further clarified that a comprehensive policy is being developed. “A committee, including officials from the water and sewerage departments, is working on a policy to charge water and sewerage taxes separately.”
Total unmetered properties – 54,226
Wards….Nos. of properties
A- Colaba, Fort – 1,985
B – Dongri ….2,776
C – Marine Lines – 4,248
D – Grant Road – 6,903
E – Byculla – 11,175
F/ North – Sion, Wadala – 6,890
F/ South – Parel – 6,065
G / South – Worli, Prabhadevi – 5,972
G / North – Dadar, Dharavi – 8,212
