The Maharashtra government announced on June 18 that there will be no hike in property tax rates for the city of Mumbai, keeping in mind the hardship caused by the ongoing COVID-19 pandemic. "There will be no hike in property tax in Mumbai till the COVID-19 situation continues," said Mumbai Mayor Kishori Pednekar, ANI reported.
“We don’t know how long will it take but till then we will not burden Mumbaikars by increasing the property tax," Pednekar added.
Property tax is paid by owners of residential houses, commercial buildings, offices, and even rental properties. The tax amount is calculated on the basis of ready reckoner rates on the property's value. Various factors like the purpose of the building, area of the property, the locality, and the number of floors. The tax is then collected by the responsible municipal corporation.
The announcement from the Maharashtra government came just a day after a proposal to hike the property tax rates by 14 percent was tabled before the Birhanmumbai Municipal Corporation (BMC).
The stay on increasing taxes is a welcome relief for residents of Mumbai, as the city was one of the epicentres of the second wave. This move to hold a potential tax hike is one in a long line of such decisions made by states and the Centre to provide relief to citizens feeling the economic aftershocks of the pandemic.
(Edited by : Shoma Bhattacharjee)
First Published: IST