NAVI MUMBAI: The general body approved NMMC's proposal of not hiking property tax for 2014-15. The proposal for retaining last year's rates was the sole agenda discussed in the Friday meeting, as the Nerul cylinder blast dominated the discussion. The remaining proposals were set aside for the next time.
Property tax rates have not been hiked since 2006 and the rates for residential propertiwes remain at 32.67% and for commercial and industrial properties, the rate is set at 53.33%. The decision to not revise the property tax was taken so as not to burden citizen reeling under economic slowdown.
"The sluggish economy has affected the residents and hiking the property tax would have further burdened them,"This decision will not affect the budgetary allocation for the next year even if property tax is a means to earn revenue," said civic commissioner Abasaheb Jarhad.
The no hike of property tax doesn't change NMMC's penalization on illegal constructions. Around 9700 odd property surveyed by the NMMC is said to be illegally constructed and the penalty recovered from them is pegged at approximately 3 crore. "Majority of illegal construction are happening within the rural parts of the city. There has been an amendment in the Mumbai Municipal Corporation Act to collect 2 times the tax from those having illegal construction over and above the actual rate," said NMMC Assessor and Collector, Prakash Kulkarni. Navi Mumbai is informed to be collecting approximately 92 crores from residential property and around 164 crore from MIDC reigon likewise 150 crores from commercial areas.
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