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Pay property tax by June 30 or you’ll be fined 2% of bill amount

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The Times of India                  14.03.2013 

Pay property tax by June 30 or you’ll be fined 2% of bill amount

MUMBAI: The municipal body's decision to extend the due date for payment of property tax bill from March 31 to June 30 has come as a temporary relief for citizens. But the fundamental issue of paying bills with retrospective effect from April 2010 and the alleged faulty capital value method of computing the tax still exist.

Moreover, now the Brihanmumbai Municipal Corporation (BMC) has decided to impose a penalty of 2% per month on those who do not pay the bills by June 30.

Citizens are still unconvinced about the new system.

"The extra three months are welcome, but it doesn't solve the core issue of the formula itself, where property tax is computed on the basis of the Ready Reckoner rate, which is faulty, irrational and discriminatory. Residents living on a property in the suburbs end up paying more than those living on a property in south Mumbai," complained advocate Godfrey Pimenta, who lives in Marol.

The new property tax system has adversely affected senior citizens, too, who live on pensions.

While the New Delhi Municipal Corporation provides concessions on property tax to senior citizens, the BMC does not

"With inflation rising every year, it will become very difficult for retired senior citizens to bear the heavy tax burden. As such, they should be granted concessions," said Pimenta.

Coleman Pereira, a senior citizen from Pali Village in Bandra (W), said that retired people live on their meagre savings and will face difficulty paying the hefty taxes.

"Our pension doesn't increase in accordance to inflation. So, if the rate of inflation has increased by 10%, my earning through pension does not rise from Rs 100 to Rs 110,"explained Pereira, who lives in a cottage in Pali gaothan.

"If property tax is computed with the capital value system, it almost doubles for my cottage doubles from Rs 3,572 to Rs 6,000 per year. The BMC has not even inspected my premises. My house has load-bearing walls, but is classified as an RCC construction," he said.

Charitable organisations and religious institutions, who are dependent on charity to help orphans, disabled and senior citizens, complained that the new property tax system will burden their resources.

St Catherine's Home in Andheri (W) and Holy Cross Church in Kurla have received staggering bills amounting to lakhs. "We have got a bill of Rs 7 lakh with retrospective effect from April 2010. Catholic charitable trusts and institutions never default in paying government bills. We run our churches and institutions on donations; they are not profitable trusts. We strongly protest against the new property tax bill sent by the L ward office in Kurla,"said Father Pascal from Holy Cross Church.
Last Updated on Friday, 15 March 2013 09:17