Full property tax waiver! Maha CM’s new year gift to homeowners in Mumbai. Details here

The Maharashtra government has decided to completely waive off property tax on residential units of up to 500 sq ft located within the Mumbai municipal area limits, reported PTI on Saturday. 

According to the news agency, Chief Minister Uddhav Thackeray announced the decision at a meeting of the urban development department earlier in the day.

The CM has asked the administration to implement the decision with immediate effect. 

The news agency quoted urban development minister Eknath Shinde as saying that the decision will benefit owners of over 16 lakh houses below 500 sq feet in Brihanmumbai Municipal Corporation (BMC) limits.

Shinde said the Shiv Sena, which rules the BMC, has fulfilled an important assurance it gave ahead of the 2017 BMC elections.

The waiver comes ahead of Mumbai municipal corporation elections due next month. 

Thackeray on Saturday chaired a virtual meeting with Shinde, Mumbai district guardian minister Aslam Shaikh, Mumbai suburban district guardian minister Aaditya Thackeray, Mayor Kishori Pednekar and Chief Secretary Debashish Chakrabarty. 

An official said the BMC is expected to lose a revenue of ₹468 crore following the waiver. 

BMC in 2021-21 had estimated property tax collection of ₹6,738 crore but could mobilise ₹4,500 crore due to the covid pandemic and lockdown. In 2021-22, the BMC has projected the property tax collection of ₹7,000 crore. 

Property registration increases in city 

Meanwhile, according to reports, property sale registrations in Mumbai saw a 70% rise to 111,552 units in 2021 from the previous year and 45% more than the pre-pandemic year of 2019.

It witnessed 9,320 property registrations in December 2021, 52% lower than the corresponding period of 2020, which had the lowest stamp duty rate window at 2%.

According to property advisory Knight Frank India, the previous annual high recorded in the period under study was 80,746 property registrations in 2018.

Sequentially, December witnessed a 23% month-on-month jump in registrations. The last month of 2021 also saw the fastest per day registrations in the past five months, and the daily sales rate accelerated towards the latter part of the month.

With inputs from agencies.