No property tax on flats up to 500sqft in Mumbai, says BMC

The Brihanmumbai Municipal Corporation(BMC), the richest civic body in India, on Thursday (February 3) announced 100 per cent relief on property tax for flats measuring 500 square feet of carpet area.

The decision will benefit about 16,14,000 people, Mumbai municipal commissioner Iqbal Singh Chahal said in his budget speech. “The amount of exemption to citizens is to the tune of ₹462 crore per annum,” he said.

On January 1, Chief Minister Uddhav Thackeray had announced a decision to waive property tax for residential units of up to 500sqft, located within the Mumbai municipal area limits.

Also read: BMC, India’s richest civic body, to give cash against house to poor

The BMC presented a budget of ₹45,949.21 crore for the year 2022-23, ahead of the civic elections. The budget estimates were 17.7 per cent more than the last fiscal, when the BMC had presented ₹39,038.83 crore budget.

More than half the budget has been earmarked for capital expenditure, from roads to bridges.

From this year, the BMC will focus on ‘Ease of Living’ and ‘Quality of Living’, Chahal said. “BMC has started the process of empanelment of urban space designers who will study and rework on the roads, footpaths and community spaces to increase the ‘Ease of Walking.”

Niranjan Hiranandani, vice chairperson, (National) NAREDCO and MD, Hiranandani Group, said: “The MCGM commissioner In his budget presentation has formalised what was announced by the chief minister. The move augurs well for affordable housing and is a positive for buyers of homes sized 500sqft or less in Mumbai. It will provide a fillip to construction of new homes in this segment. I look forward to a scenario where this can be extended to other cities in the state, as also positively consider the suggestion being made by consumer forums, about extending this to homes sized 750sqft.”