Mumbai, Feb 4 (PTI) – The Brihanmumbai Municipal Corporation (BMC) has unveiled plans to impose property tax on commercial establishments operating in slum areas, a move that is expected to generate additional revenue. In a press conference following the presentation of the civic body’s budget on Tuesday, BMC Commissioner and Administrator Bhushan Gagrani revealed that the tax would generate an estimated Rs 350 crore in fiscal year 2025-26. The total property tax collection for the upcoming year is projected to reach Rs 5,200 crore, contributing to the BMC's overall revenue target of more than Rs 43,000 crore.
The BMC also outlined plans to introduce a Solid Waste Management (SWM) user charge, though this levy is not expected to take effect in FY 2025-26. Instead, it will be introduced in phases, following guidelines from the Union government and after obtaining legal advice.
A survey to assess the number of shops and businesses in slums is already underway, with tax rates to be determined based on the size and location of the properties, according to Gagrani. The additional revenue is expected to fund improvements in services and infrastructure for slum dwellers, as noted in the budget document.
However, the decision has faced significant backlash from opposition parties. Samajwadi Party legislator Rais Shaikh criticized the move, accusing the BMC of financial mismanagement. He pointed out that while flat owners in Mumbai with properties up to 500 square feet were granted a tax waiver, the poorest sections of the city—slum dwellers—would now be burdened with both property taxes and SWM user charges. "This is highly unacceptable," Shaikh stated.
The BMC's budget, which includes these new proposals, will likely spark continued debate in the days ahead.
The BMC also outlined plans to introduce a Solid Waste Management (SWM) user charge, though this levy is not expected to take effect in FY 2025-26. Instead, it will be introduced in phases, following guidelines from the Union government and after obtaining legal advice.
A survey to assess the number of shops and businesses in slums is already underway, with tax rates to be determined based on the size and location of the properties, according to Gagrani. The additional revenue is expected to fund improvements in services and infrastructure for slum dwellers, as noted in the budget document.
However, the decision has faced significant backlash from opposition parties. Samajwadi Party legislator Rais Shaikh criticized the move, accusing the BMC of financial mismanagement. He pointed out that while flat owners in Mumbai with properties up to 500 square feet were granted a tax waiver, the poorest sections of the city—slum dwellers—would now be burdened with both property taxes and SWM user charges. "This is highly unacceptable," Shaikh stated.
The BMC's budget, which includes these new proposals, will likely spark continued debate in the days ahead.
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