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To shore up revenue, BMC to levy sewage tax on 54,000 homes under 500 sq ft

indianexpress.com ·

To shore up revenue, BMC to levy sewage tax on 54,000 homes under 500 sq ft

The Brihanmumbai Municipal Corporation (BMC) plans to introduce a sewage tax for over 50,000 Mumbai homes under 500 square feet to boost its revenue. This new tax, alongside a proposed 6-7% hike in water tax, aims to generate an estimated Rs 90 crore to Rs 100 crore annually for the civic body. Currently, the sewage tax is incorporated into property tax for residential and commercial establishments, but it was waived in 2022 for homes smaller than 500 sq ft.

As of now, 54,226 such properties are set to be taxed, with the tax based on ready reckoner rates. The proposal is set to be presented to the standing committee in April 2027. However, opposition leaders from the BMC have vowed to oppose any new tax rate. The BMC's revenue has declined significantly, with fixed deposits dropping from Rs 91,690 crore in 2021-22 to Rs 79,498 crore in 2024-25.

Moreover, the corporation has undertaken infrastructure projects worth Rs 2.5 lakh crore, three times its reserves. In addition to the sewage tax, the BMC plans to raise water tax by 7-8%, following a previous increase in 2022.

Written by urgent.news from The Indian Express's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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·hani.co.kr

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