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BMC property tax crisis: Revenue falls to record low
Updated On: 26 March, 2024 06:58 AM IST | Mumbai | Prajakta Kasale
As Mumbai’s cash flow dries up, BMC scrambles to salvage budget
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The Brihanmumbai Municipal Corporation (BMC) is marching towards recording the lowest property tax collection in the past 10 years, even lower than the pandemic years. Delayed bills, disputes over new methods of tax calculation and no hike in the last five years are the reasons behind the dwindling revenue source.
Once the major source of funding for the city’s infrastructure projects, BMC’s property tax collection has lost its former prominence in recent years. Until last year, property tax stood as the second-largest income source for BMC after compensation in lieu of octroi from the state government. However, in the revised estimates for 2023-24, BMC expects to collect around Rs 5,500 crore from development plan fees and premiums, with revised property tax income projected to be around Rs 4,500 crore by the end of March. For 2024-25, the BMC estimated Rs 4,950 crore from property tax and Rs 5,800 crore from development plan fees.
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