BMC extortion by property tax
Property tax levied by Brihan Mumbai Municipal Corporation (BMC) is like extorting money from flat owners. Recently BMC has increased its property tax in the city. New buildings and properties in the city are paying hoping Rs. 5.50 per sq. ft. property tax. Neelkanth Valley at Ghatkopar is been charged by the BMC for Rs. 5.50 per sq. ft. per month. If a person owns a 1000 sq. ft. in the project he has to pay Rs. 5,500/- property tax per month. Similarly, in Kandivali east it has Rs. 2 to Rs. 2.50 per sq. ft. In tower buildings like Challenger, these rates are applicable above these limits. Projects with swimming pool and extra space for gardens are been charged Rs. 3 to Rs. 6 per sq. ft. Raheja Vihar at Borivali east cost Rs. 2.50 per sq.ft. as property tax levied by BMC. Evershine Millennium Paradise project at Kandivali will charge Rs. 2.50 per sq.ft. per month excluding BMC taxes. It shall go up to Rs. 5.50 to Rs. 6 per sq.ft. per month. Projects at Malad link road will cost Rs. 2.50 per month for per sq.ft. as property taxes by BMC. It is learnt that tower buildings attract property taxes to the tune of Rs. 6 per sq.ft. per month. Poor flat purchaser has to pay through his nose the enhanced property taxes. After few years when major repairs comes up the unprecedented escalation of repairs will make him sell his flat to pay his dues towards repair bills and extorting property tax bills. Surprisingly BMC charges these property taxes on retable value based on the standard rent. The standard rent is been calculated by BMC on fair market rental value of the property. The determination of standard rent is totally arbitrarily decided by BMC. It also charges sewerage charges in property tax and also in water taxes bill for the same period. Hence charging for the same service twice in different bills. If the situation persist for long, it may so happen that the sale in new complexes and in new projects will come down substantially. Resale transaction will be most preferred, if BMC do not come down on earth and charge reasonably.
