Civic body, which discarded a similar idea twice in the past, plans a charge on slum structures as a new source of income
The BMC had, in the past, discarded two of its proposals to impose tax on properties in the slums in Mumbai. File pic
Once again, the Brihanmumbai Municipal Corporation is considering levying a tax on slum structures with the aim to add some Rs 500 crore to its kitty. The cash-strapped civic body will impose the tax based on the area of a property and the number of floors.
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Last time the BMC decided to collect tax from slum dwellers was in 2016-2017. In 2016, the corporation decided to collect from Rs 2,400 to Rs 18,000 as tax, annually, based on the area and type of huts. The following year, the then BMC chief Ajoy Mehta proposed in the Budget to levy tax on slum properties. However, the civic body did not go through with either of its decisions. Until 2006-07, the BMC took a service charge of Rs 100 from residential and Rs 250 from commercial structures in slum areas.
Having suffered losses due to the pandemic, the BMC is now trying to open new sources of income. “The corporators spent at least Rs 1 crore on infrastructure in the slums every year. Then the civic body should take some charge for it,” said a civic official. He added that there are thousands of structures on rent and the slum owners are taking rent in lakhs every year. They should not have any issue in paying some charges for the service provided by the corporation.
Sangita Hasnale, assistant commissioner of the tax assessment and collection department, told mid-day, “The charges will not be like property tax that depends upon the capital value of the structure. It will be a service charge. The BMC has a survey of structures and the tax will depend on the area and the number of floors. It also differs for residential and commercial structures.”
The BMC conducted 360 degrees LIDAR (Light Detection and Ranging) Property survey in 2017-18 to identify the additional area being used by citizens. But the survey had excluded slums. But, the BMC official said they have enough information and can levy charges based on the size of the structure.
Rs 500
Amount in crore BMC aims to add to its kitty
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