Maharashtra Government Announces Property Tax Exemption for Small Residential Properties
New Year’s Eve Announcement Brings Cheer to Mumbai Homeowners
On the last day of 2021, the Maharashtra government made a significant announcement that is set to benefit a substantial number of residents in Mumbai. The state government has decided to completely waive off property taxes for residential properties with an area of up to 500 square feet in Mumbai.
Decision Implementation and Key Stakeholders
- Immediate Implementation: Chief Minister Uddhav Thackeray directed the concerned authorities to implement this decision without delay, following a virtual meeting.
- Meeting Attendees:
- Uddhav Thackeray, Chief Minister
- Eknath Shinde, Urban Development Minister
- Aslam Sheikh, Mumbai District Guardian Minister
- Aditya Thackeray, Mumbai Suburban District Guardian Minister
- Kisori Pednekar, Mayor
- Debashish Chakrabarti, Chief Secretary
Benefits and Financial Implications
- Beneficiaries: Over 16 lakh homeowners residing in properties up to 500 sqft within the Brihanmumbai Municipal Corporation (BMC) limits will benefit from this tax waiver.
- Revenue Impact: The BMC is expected to forgo approximately Rs 468 crore in revenue due to this exemption.
- Previous and Projected Revenue:
- 2021-2021: Rs 6,738 crore (expected), Rs 4,500 crore (actual due to COVID-19 pandemic)
- 2021-2022: Rs 7,000 crore (projected property tax)