BMC new property tax bill challenged
The new property tax system proposed by Brihanmumbai Municipal Corporation (BMC) has been challenged by a PIL in the Bombay High Court recently.
The new property tax bill will be applicable from April 1, 2013 but has been caught amidsr many controversies.
An activist named Rajendra Thacker has filed the PIL which states that the new property tax will be calculated as per the capital value based on the land or the building.
The activist states that the new capital value system was adopted to rationalise the property taxes of the island city and suburbs.
As per the petitioner, the rent of properties in island city is less compared to the rental rates in the suburbs. The capital value method was supposed to reduce the property tax in the suburbs and increase it in the island city.
The activist has also researched on the market value of properties in Mumbai and found that the rates of the properties are assigned as per the ready reckoner issued by the state government and the joint director of town planning every year.
Also, as per reports, Chief Controlling Revenue Authority on January 1, 2013 had announced an increase of 10-20 percent in the rates.
However, when the new formula for the tax was in place, the tax for the petitioner’s property in Borivali and the neighbouring buildings had also been increased.
According to the petitioner, the rates in the ready reckoner have neither been publicised and nor any suggestions invited when they were made. The property tax has also been hiked as against the reason given by the Respondent No 3 (BMC).
The new method of calculating tax and the transition was aimed at reforming the current municipal tax system, due to which a major cause for concern has risen.
Furthermore, the senior citizens are even concerned about the receipt of huge property tax bills with retrospective effect from April 2010.
Related Real Estate News:
Mumbai property tax payment dates extended by 3 months
Mumbai property tax opposed by residents
Mumbai property tax can be paid as per old rates till March
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