Mumbai: BMC banks on technology to fill property tax kitty

The BMC’s property tax collection has remained stagnant at Rs 5,000 crore for the past five years. Other than countless hurdles due to COVID-19, it also could not send property tax bills amid confusion over whether to waive tax for all

In its quest for a reliable, long-term income source, the Brihanmumbai Municipal Corporation plans to renew its focus on property tax recovery with the help of technology. The civic body expects to receive about Rs 7,000 crore from this head in the next financial year.

The fineprints in the corporation's budget, which was presented on Wednesday, talk of creating a Statistical Analysis System or SAS to generate reports on demand, collection and pending property tax in real-time.

Income pegged at Rs 27,000 crore
The BMC has pegged its income at Rs 27,000 crore for 2021-22. While this figure includes a GST compensation of Rs 10,000 crore and a Rs 5,000-crore grant from the state government, the virus has disturbed its revenue maths with other income sources. A big source of income on paper, BMC's annual property tax collection has remained stagnant at Rs 5,000 crore for the past five years after the introduction of the tax based on capital value. This has resulted in the pending dues ballooning to over Rs 19,000 crore.

In the current financial year, the BMC managed to collect property tax worth Rs 734 crore till December 2020. Other than many hurdles due to COVID-19, it also could not send property tax bills amid confusion over whether to waive tax for all.

Officials hope SAS will give them an upper hand by providing quick access to defaulters' list with multiple permutations and combinations on variables like plot of land, commercial, residential and industrial properties.

In its budget, the civic body has again mentioned a long-pending plan to penalise owners of unauthorised structures, under the MMC Act, 1888. The law allows the BMC to impose a fine equal to twice the property tax.

Four new policies to take effect
Along with its property tax recovery plan, the civic body has cleared four policies - Capitalised Value Policy, Lease Renewal Policy, Policy regarding Regularisation of Unauthorised Construction/ Breaches of Leased Plots and Granting Lease of Vacant Land Tenancy - that would be implemented this time. These policies were ready last time but got stuck due to COVID.

Rs 7,000 cr
BMC's property tax estimates for 2021-22

Rs 19,000 cr
BMC's pending property tax dues so far

Rs 734 cr
Property tax BMC collected till December in FY20