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The BMC's recent property tax bills have prompted confusion among citizens and public representatives regarding a hike in the assessment bills for the fiscal year 2023–24. A footnote in the bill indicated that the court had deemed three rules of the capital valuation rules invalid, clarifying that the bills were issued on a security or ad hoc basis. The civic body reserved the right to reassess properties retrospectively and collect tax accordingly after announcing a revised policy on assessment.
Following this, Municipal Commissioner Chahal provided clarification that although no hard copies of bills had been issued, terms such as 'bill payable' and 'bill amount' were used on the BMC website. This was in response to the recent Supreme Court order on property taxation and the legal opinion obtained by the property tax department. Chahal stated that to eliminate any ambiguity, they would generate actual property tax bills, mentioning only the payable amount.
The Commissioner emphasized that the payable amount for this fiscal year will be equal to the amount payable for the last financial year, and there has been no increase in property tax in the current financial year.
A senior BMC official informed that the BMC had written to the state, seeking an amendment concerning property tax in the MMC Act 1888, following the Supreme Court order. The proposed amendment is anticipated to be presented in the legislative assembly. The last revision of property tax by BMC dates back to 2015. Subsequently, the revision of property tax was deferred for 2020–21 and 2021–22 due to the impact of Covid-19. In 2022–23, the BMC further deferred the revision by a year.
Earlier this year, the BMC filed a review petition challenging a 2019 Bombay High Court order that set aside certain rules framed by the BMC for retrospective tax assessment. The Supreme Court rejected the petition by BMC.
Questioning the BMC administration, Asif Zakaria, a former corporator, paid the bill generated for the housing society where he resides as a test case and received a receipt. Zakaria raised concerns about the BMC generating bills with a 15-20% hike compared to the previous year. He emphasized that if the BMC generates a bill, even with terms like 'bill payable' and 'bill amount' mentioned, the bill amount is a liability, and payment can only be deferred. He questioned how the system generated the bill if there had been no hike in property tax.
During the fiscal year 2022–23, the BMC collected Rs 5,792 crore in property taxes, constituting its second-largest source of revenue. The BMC's highest source of revenue, amounting to an annual worth of Rs 11,000 crore, is generated through Octroi.
In conclusion, the recent property tax billing confusion highlights the need for clear communication and accurate bill generation. The BMC's commitment to generate actual property tax bills with only the payable amount should alleviate concerns and ensure transparency in the process.
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