MUMBAI: Last Friday, the civic House passed a notice of motion (NoM) proposing to raise the property tax exemption limit for residential units from 500 sqft to 700 sqft.
BMC officials emphasized that an NoM is not binding on the administration; the proposal will be reviewed by civic administration. It could be approved, altered, referred to committees, or simply acknowledged.
Currently, approximately 3.6 lakh properties in Mumbai are exempt from property tax due to their carpet area being under 500 sqft. This policy was initiated in 2022 by BMC following a directive from the state government. Property tax serves as a significant revenue source for the civic body, with the BMC collecting Rs 6,198 crore in property taxes for the year 2024-25.
The NoM was introduced by Shiv Sena (UBT) corporator Yashodhar Phanse, who highlighted that middle-class families relocated through slum and chawl redevelopment schemes are struggling to manage property tax and upkeep expenses.
Even though these beneficiaries receive homes at no cost, recurring expenses like maintenance, repairs, healthcare, and education have made living in Mumbai increasingly unaffordable, leading many to sell their flats and leave the city. The NoM argues that raising the exemption limit is essential for “original Mumbaikars” to remain in the city.
A property tax exemption for residential units up to 700 sqft was a key promise from Sena (UBT) and MNS in their joint manifesto ahead of the BMC elections.
Former BJP MP Manoj Kotak, who proposed a similar measure during his time as a Mulund corporator in 2018, described the NoM as unnecessary, since his proposal is still pending with the state government. He remarked that if Sena (UBT) were genuinely concerned about the issue, it should have secured its approval while in control of the state government.
