Mumbai property tax system opposed by builders
The new property tax system by Brihanmumbai Municipal Corporation (BMC) has been opposed by the real estate builders. The developers have even showed their support to consumer associations protesting against the tax system.
According to the new system, the property tax is computed based on the capital value of the property as against the earlier system of going by the rental values.
Around 35,000 owners of properties in Mumbai and NGOs have staged protests against the property tax. Some have also planned a one-day hunger strike opposing the new tax system computed on capital values.
As per Maharashtra Chamber of Housing Industry, the new tax which has been released is against consumer interest and is out at a time when the common man is already burdened with the hike in property rates and other taxes such as stamp duty and value added tax.
Due to inflation, people are unable to cope up with the high pressure due to job loss, economic slowdown and taxes. The new civic body rules says that the total built-up area of a property will include areas such as terraces, basement, stilt, porch, podium, entrance lobby, lounge, air-conditioning room room which goes on till the watchman cabin.
Tenancy, age of building, type of structure and open spaces are some of the factors for which the new property tax system will give weightage.
BMC has given a relief to the residents of Mumbai by announcing an extension in dates for payment of property tax.
Now, the last date for paying the new capital value based property tax is extended by three months. However, an official announcement is yet to be made.
For many days, citizens have been in a hassle over the payment of the new property tax after receiving the bills. The bill also included arrears since 2010, which made the total amount look rather daunting.
Earlier, the last date of paying the bills was March 31. But now, after many protests by the citizen groups and activists, the extension has been considered by the authorities. Municipal commissioner has decided on the extension of the date by using his special powers.
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