The Brihanmumbai Municipal Corporation (BMC) has succeeded in passing a resolution, in which property tax for residences with carpet area of under 500 sq ft has been waived



Picture for representational purposes

In what could be termed as good news for Mumbaikars, who own homes up to 500 square feet carpet area, the Brihanmumbai Municipal Corporation (BMC) succeeded in passing a resolution, in which property tax for such residences has been waived. Furthermore, a 60 per cent rebate was also announced for structures between 500 sq ft and 700 sq ft.

The proposal was cleared at BMC's general body meeting on Thursday. Currently, inhabitants of houses up to 500 square feet, properties, which comprise nearly 14.98 lakh in Mumbai are charged only nominal tax. However, BMC officials say the waiver will put a burden of Rs 500 crore on the civic body.

According to Hindustan Times, the waiver will come into affect after the state government amends the Mumbai Municipal Corporation (MMC) Act 1888, to waive property tax. This will take place after the resolution is forwarded to them for approval.

During the BMC elections, Sena had promised in its manifesto to give complete relief to citizens having a home of 500 square feet and partial concession on houses between 500 sq ft to 700 square feet on property tax. However, after Sena came to power in BMC, leaders forgot to follow up the issue.

Shiv Sena Chief Uddhav Thackeray echoed the promise and said the party will ensure people get relief in the next one year, during his speech at Sena's foundation day in June.

Property tax is civic body's second biggest source of income after octroi. BMC earns about Rs 4,000 crore every year from property tax. According to officials from the assessor and collection department, when the proposed waiver comes into effect, it will put a burden of Rs 500 crore on BMC.