Introduction
The Maharashtra government has approved a proposal allowing an exemption in the property tax for residential units with a size of less than 500 square feet. This is a welcome move that will bring immense relief to people living in smaller units by eliminating the financial burden of high property taxes. As per the reports, an ordinance is expected to be issued soon. This is indeed a positive step towards easing the property tax structure in the state.
Maharashtra property tax: Are you aware that the property tax comprises several taxes and charges, including water tax, water benefit tax, sewerage tax, sewerage benefit tax, general tax, education cess, tree cess, and street and betterment charges? It’s crucial to understand these components, especially for the unemployed, who may be struggling financially. Being aware of what makes up the property tax can help you better manage your finances and plan your budget effectively.
Reducing the Financial Burden on Citizens
The Maha Vikas Aghadi (MVA) government has taken an important step in 2019-20 by announcing property tax exemption due to the COVID-19 pandemic. It is heartening to know that the state cabinet has decided to continue this waiver for the fifth consecutive year. Bringing much-needed relief to property owners. This decision will go a long way toward reducing the financial burden on citizens in these challenging times.
Brihanmumbai Municipal Corporation (BMC) is suffering the maximum loss of revenue due to a property tax waiver by the government. This issue should be resolved as soon as possible for the smooth functioning of BMC. The decision was announced during the debate on the bill that property taxes should not be increased for any buildings or plots.
Govt to Reduce Tax Burden on Mumbai Residents
BMC is losing up to ₹ 300 crores due to MVA. An official of the civic body said that the decision taken by the Mahayuti government has now been taken. According to BMC data, around 16 lakh residential units of less than 500 sq ft area come under its jurisdiction. The move will save Mumbai residents an additional tax burden of ₹736 crores, the government said.
The BMC administration has already revised the revenue collection for property tax to ₹ 4,500 crores of the budgeted total of ₹ 6,000 crores. The BMC took up the amendment after losing a review petition in the Supreme Court on the capital appreciation system in March 2023. Due to legal complications in BMC’s tax assessment, the civic body is waiting to send bills to taxpayers. Current financial year (FY 2023–24).
Current Financial Year Is Likely to Start Next Week
BMC Commissioner Dr. Iqbal Singh Chahal had earlier said, “A decision will be taken at the state cabinet meeting on Monday not to increase property tax for 2023–24. After that, the sending of bills for the current financial year is likely to start next week. In the remaining two months of the current fiscal, the BMC has to raise ₹3,895 crores to meet the revenue target.
Conclusion
If you want to know more about property tax in Maharashtra, you can visit the official websites. Calculating, paying, and viewing your property tax bills and receipts is all done online. Normal tax ranges from 10 percent to 30 percent of the total amount. For more information, visit our openplot.
Also read: MahaRERA Issued Notices for 41 Unregistered Projects