27 February,2021 07:03 AM IST | Mumbai | Prajakta Kasale
The BMC has been struggling to collect property tax ever since it introduced capital base property tax in 2015. Representation pic
The BMC has started selecting two properties from each ward to auction to recover pending property tax. Out of over 3,500 properties attached - including open land, commercial and residential structures - the chosen ones will be auctioned after declaring their details and a 21-day notice. Property tax dues run into over Rs 20,000 crore, with the civic body having collected Rs 2,200 crore out of the estimated R6,780 crore property tax this financial year.
After it introduced capital base property tax in 2015, the BMC has been struggling to collect property tax. Many matters are under litigation and property holders have failed to deposit even 50 per cent of the tax. The corporation had been attaching such premises but couldn't auction them. The BMC committee recently granted the administration permissions for auctions.
âList being prepared'
"We are preparing a list of defaulters' properties, mainly unmovable ones like land or structures. There will be two properties from each ward and a list will be published so that the defaulters get to know about it. If they fail to clear the pending tax within 21 days, we will auction the properties to recover the tax," said Sangita Hasnale, assistant commissioner of the Tax Assessment and Collection Department.
BMC has set target
The BMC has attached around 3,500 properties. Officials think that once they start auctioning properties, defaulters will realise the gravity of the situation and pay up. Otherwise, the auction will continue.
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"We are trying to complete the process before March-end but even if it takes a few more days, it will not make much difference. The property tax will be collected in the next financial year with a penalty," said Hasnale. The BMC has set a target of collecting Rs 7,000 crore in property tax in the financial year 2021-22.
The BMC's earlier target of R6768 crore for property tax collection was revised to Rs 4,500 crore. Last year, till February 25, the BMC had collected R3,154 crore against the target of Rs 5,016 crore.
