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.