Hindustan Times 15.12.2009
BMC hunts for property tax defaulters
You will have civic officials at your doorstep if you have not paid your property taxes.
The cash-strapped Brihnamumbai Municipal Corporation has started sending civic inspectors and collector department to remind people about their dues and collect them.
Everyone who owns property in Mumbai has to pay the tax. The amount is determined through a formula in which the building’s age and its rental value are considered.
Broadly, it works out to 40 per cent of the annual rent. To this, elements like water charges are added.
On Sunday, BMC officials visited several residents in Andheri (west). “When he came to our door, we were surprised as it has never happened,” said a resident of RTO Colony, requesting anonymity. The officer from the K-west ward also visited some colonies in Versova.
“Often, people do not pay their property tax and the amount increases because of penalties. Our inspectors visit homes on Sundays and if residents wish, they can pay their dues immediately by cheque or pay at the ward office the next day,” said S.S. Shinde, joint municipal commissioner.
The BMC charges a 20 per cent penalty if you don’t pay by the end of the fiscal year. For every year thereafter, another 20 per cent gets added.
Faced with a revenue shortfall of up to Rs 2,000 crore in its annual budget of Rs 19,000 crore, the BMC has also sent a letter requesting the Bombay High Court and Supreme Court to clear pending property tax cases.
Sources said there were 2,892 property tax-related cases pending, from which the BMC could earn Rs 1,891 crore.
