BMC releases norms for new property tax system
Mumbai, October 15: As an introductory move towards determining the calculation for the new property tax based on capital value, the BMC on Friday announced the value it would grant to factors like the age, construction and utility of a structure.
While the civic body has offered older buildings a sizeable concession on the grounds of depreciation, it has allotted a petty slash for taller buildings, as the capital value of a property is being computed according to its height. The BMC has also appointed a three-member panel that has fixed these rates of concessions.
Though the weightage value manual has been released, the civic body is yet to arrive at the crucial rate of tax. Municipal Commissioner Swadheen Kshatriya said that the corporation will finalise the rate of tax as soon as the system is enforced. The new system could be set in motion from the billing month of September this year,” he said .
In the new capital value system, the amount—a percentage of which will be the property tax—will be based on the actual cost of the property. The figure will be based on the stamp duty ready reckoner that the government publishes every year. The new system—which came into effect from April 1, 2010, but could not be implemented as the tax rates had not been fixed—will be introduced in phases across the city, replacing the existing rateable value system.