28 January,2025 07:27 AM IST | Mumbai | Sameer Surve
Behrampada slum in Bandra East where several commercial operations are carried out. Pic/Sayyed Sameer Abedi
The Brihanmumbai Municipal Corporation (BMC), which has begun surveying commercial slums, is considering recovering property tax from floors in slums where commercial activities are being carried out. The civic body will start levying property tax on commercial slums in the coming financial year.
The BMC has also analysed the data of gumasta licence (shop and establishment) holders. "So far, the civic body has learnt that there are 3500 commercial slums across the city. The process of sending out property tax bills has started," said an official from the assessment and collection department of the BMC on the condition of anonymity.
"We are also thinking of recovering property tax from every floor of slums that is being used for commercial purposes. We need to iron out the details of this proposal," the official added.
On January 10, mid-day highlighted how the municipal corporation was is mulling over whether to levy property tax on commercial slums. Now, the civic body is taking this proposal to the next level.
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According to data from the 2011 census, there are around 16 lakh slum structures in the city. Out of these, a few may be redeveloped under the slum redevelopment programme.
Till 2006-07, the BMC would collect an annual service charge of R100 from residential slum structures and Rs 250 from commercial ones.
In 2016, the civic body decided to collect from R2,400 to R18,000 in tax, annually, based on the area and type of shanties. The then-BMC chief Ajoy Mehta also proposed in the BMC budget that taxes be levied on slum properties. But in 2018, the BMC abolished property tax for residential property up to 500 square feet in area. After that, the decision to collect property tax from slum dwellers was put on hold. The BMC now estimates that around R200 crore can be earned from levying property tax on commercial slums.
Rajesh Rai, a dairy shop owner at Kurar Village in Malad, said, "We don't mind paying property tax, but the BMC should keep in mind that we are running our shops in slums, not commercial buildings."
