Residents’ groups across Mumbai protest new tax system
Under the new capital value-based system property taxes are likely to go up in south Mumbai, while residents in the suburbs may get some relief from the current property tax levels.The new system was announced on 1st April 2010, but has not been enforced as the tax rate has not been fixed yet. The civic body decided to change to the capital value-based property tax system in order to bring about parity in taxation. The last date for submission of suggestions and objections to the draft rules is November 30.
Residents’ groups across Mumbai are gearing up to put up a spirited opposition against the draft rules for computing tax based on capital value as they feel that many of its provisions will raise the maintenance cost of housing societies and will also make it an expensive affair for property owners.The amended BMC Act of 1888 itself speaks of carpet area, but the rules aim to levy tax on built-up area which, according to residents, is illogical.
The BMC has come out with another concept of levying additional 20 per cent tax on luxurious property in mumbai (having more than one lift). Higher taxation is proposed for flats above 4th floor, which is again irrational in city like Mumbai. The proposed rules aim at levying tax as per the rates mentioned in the ready-reckoner.
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