State Assembly Amends Law And Ensures Capital Value Of Assets Will Not Be Revised In Fiscal Year 2021-22 | Bombay News

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MUMBAI: As a relief for Mumbai residents on the eve of municipal elections slated for early next year, the state legislature has approved a bill that will freeze the capital value of properties in the city, which will result in lower property tax bills this fiscal year.

MUMBAI: As a relief for Mumbai residents on the eve of municipal elections slated for early next year, the state legislature has approved a bill that will freeze the capital value of properties in the city, which will result in lower property tax bills this fiscal year. . The assembly on Tuesday approved an amendment to the Mumbai Municipal Corporations Act 1888, which will ensure that the capital value of buildings and land in Mumbai, on the basis of which property tax is charged, will not be revised during the current fiscal year.

According to the Mumbai Municipal Corporations Act, property tax is determined based on the capital value of a building or land. The law also provides for the capital value of these land properties to be reviewed every five years and, as such, a review is due in 2020-2021. However, the Covid-19 pandemic, lockdown and resulting economic distress prompted the state government to decide last year that the capital value of land and buildings will not be revised in 2020- 2021 and that the property tax will be the same as in the year 2019-20. As the economic stress caused by the pandemic continues, it has been decided to continue with this pb and therefore the change in the law will ensure that the property tax bills will be the same as in 2019-2020, and they will not be revised until 2022-23.

Opposition leader Devendra Fadnavis said the Brihanmumbai Municipal Corporation (BMC), which has set deposits to the tune of Rs 78,000 crore, should waive property tax on residential units up to 500 square feet. He highlighted how the Shiv Sena had promised it in their manifesto for the 2017 BMC elections. Urban Development Minister Eknath Shinde said the proposal was under consideration. He added that the two-year property tax cap would cost BMC Rs1,000 crore each year, and also result in a proportional benefit to citizens.

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