By Accommodation Times News Service
The method involved multiplying the carpet area of a property with the ready reckoner rate and 1.2
Citizens can expect no reduction in their property tax bills for 2010 to 2014 as the civic body has decided to stick to the method used for its calculation during the period.
The method involved multiplying the carpet area of a property with the ready reckoner rate and 1.2. The BMC had consulted the state advocate general (SAG) after corporators opposed the 1.2 factor in the method. The SAG, though, has said it is essential as otherwise the BMC would suffer major losses.
From 2015, the BMC had proposed calculating property tax by multiplying the carpet area with the ready reckoner rate. However for the period of 2010 to 2014, BMC calculated it on the basis of a flat’s built-up area. The Bombay high court directed the BMC to calculate tax on the basis of the carpet area. Following the order, the BMC submitted a new formula based on carpet area, but civic officials proposed to multiply the ready reckoner rates by 1.2 to ensure to “minimize revenue losses”.
Corporators subsequently asked the civic body to seek the SAG’s opinion on the 1.2 factor. The SAG suggested the factor was logical as per municipal rules. “There is no difference in what the BMC had proposed and what the advocate general has asked us to go ahead with. The advocate general’s opinion would be tabled before the corporators at the standing committee meeting on Wednesday,” said an official from BMC’s assessment and collection department.
Bandra Congress corporator Asif Zakaria dismissed the proposal, calling it absurd.