Good news for the Mumbaikars! Uddhav Thackeray announces property tax exemption on residential properties up to 500 square feet

Ahead of the upcoming Brihanmumbai municipal elections, Chief Minister Uddhav Thackeray, who is recovering from spinal surgery, announced a New Year’s gift to the Mumbaikars on Saturday. As promised by Shiv Sena in his “vachannama,” Thackereay, who chaired a virtual meeting, announced a full exemption from property tax on residential properties measuring up to 500 square feet. He asked the urban development led by his close confidant and leader of Shiv Sena Eknath Shinde to be implemented immediately by completing the necessary formalities.

The government’s decision will benefit nearly 16 lakhs of residences that house lakhs of families in the city. BMC is expected to lose a turnover of Rs 462 crore per year. The Urban Development Department has hinted that it will be implemented from April, as the government will need to issue an ordinance proposing an amendment to the 1888 Mumbai Municipal Corporation Act. However, Urban Development Minister Eknath Shinde said the waiver would apply from January. Thackeray also asked the Department of Urban Development to implement the decision immediately.

The state cabinet, which will meet next week, will approve the Urban Development Department’s proposal and pave the way for immediate implementation.

BMC in 2021-2021 had estimated property tax collection at Rs 6,768 crore, but could raise Rs 4,468 crore due to the covid pandemic and foreclosure. In 2021-2022, the BMC has planned to collect the property tax of Rs 7,000 crore.

Thackeray leaned on his estranged ally, the Bharatiya Janata Party, saying that Shiv Sena does not make big promises like the BJP, but announces “vachananama” with the determination to achieve it.

Shiv Sena is committed to promoting the development of Mumbai. It is the fourth generation of Thackeray who is currently working to take the city’s development to a new scale. I call on all Mumbaikars to continue supporting Shiv Sena and don’t worry because Maha Vikas Aghadi’s party and government are able to take care of everything, especially to fight the current COVID 19 crisis. ” he noted.

Shinde said the move will benefit owners of more than 16 lakh homes up to 500 square feet within BMC boundaries. He noted that the Shiv Sena, who heads the BMC, fulfilled an important assurance he gave ahead of the 2017 BMC elections.

Shinde, in the recently concluded winter session of the state legislature, told the legislature that the property tax on residential properties measuring up to 500 square feet had been completely removed by the government of Maharashtra. He was speaking during the discussion of a bill aimed at not increasing the property tax on residential buildings and land.

The opposition has raised the issue of the property tax exemption for 500 square foot residential properties which includes general tax and other service taxes. The government’s position is also of the same view. course and the decision will be made soon, ”Shinde said in her response.

Former Maharashtra CM and opposition leader Devendra Fandavis had said that only general tax on property tax bills was removed and not all property tax as promised by the leader of the time of Shiv Sena, Uddhav Thackeray.

Knight Frank India Executive Director Gulam Zia told the Free Press Journal: “Last year the reduced stamp duty for buyers brought markets back as well as buyers. The current year, the volume of transactions of 1,12,000 apartments in the BMC zone alone was the best of the last decade and 40% higher than the number before covid. The volume of transactions is increasing. The government’s decision on the property tax exemption will have an impact on BMC’s revenues. However, I expect it to be covered by the rebound in the real estate market, with the mid and high end segments buying apartments like never before. The income gap will be covered by the upper segment. ”

On the other hand, Maharashtra Societies Welfare Association chairman Ramesh Prabhu said the decision should be implemented without any further conditions or restrictions. This will benefit the people who stay in the housing companies. He will look at the trend of building smaller houses in the city, ” he said.

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Posted on: Saturday January 01, 2022 19:02 IST

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