Mumbai, the civic administration has successfully collected ₹268.77 crore in its inaugural property tax drive targeting commercial establishments within slum areas, marking a significant revenue generation milestone. This first-time assessment followed an extensive survey that identified over 17,219 structures, including shops and workshops, for taxation. The initiative aims to integrate these businesses into the formal tax net, acknowledging their utilization of civic infrastructure services. Despite criticisms regarding the burden on livelihoods, this move underscores the Brihanmumbai Municipal Corporation’s resolve to broaden its tax base and enhance financial resources for urban development.
The collection efforts yielded maximum recovery from the western suburbs, amounting to ₹253.84 crore, followed by the island city at ₹12.69 crore, and the eastern suburbs at ₹2.24 crore. While the overall property tax due from these establishments across Mumbai was ₹473.42 crore—exceeding the Brihanmumbai Municipal Corporation’s (BMC) projected collection of ₹350 crore for FY 2025-26—the actual collection registered a shortfall of ₹204.65 crore. Additionally, the civic body successfully collected penalties totaling ₹140.26 crore from these establishments for delayed payments. The municipal commissioner had previously stated that these commercial entities in slums benefit from civic amenities and thus should contribute through property tax, noting that approximately 20% of Mumbai’s 250,000 slum tenements are commercial operations.
Addressing concerns, a civic official clarified that levying tax on these commercial structures does not legalize them, citing Section 152(A) of the Mumbai Municipal Corporation Act, 1888. However, the initiative has drawn sharp criticism from political leaders, including a former civic corporator, who argued that the BMC should prioritize collecting dues from major defaulters rather than burdening Mumbaikars whose livelihoods depend on these small establishments. They highlighted that many slum residents are still recovering from the COVID-19 pandemic’s economic impact. Conversely, the civic official asserted that many taxed establishments serve as godowns for larger businesses or engage in ancillary activities, rather than being solely small, independent shops.
This pioneering tax collection reflects the BMC’s intent to enhance urban revenue and ensure equitable service provision. While facing criticism, the move highlights the complexity of integrating informal economies into formal tax structures. It underscores the ongoing challenge of balancing revenue needs with socio-economic sensitivities in a rapidly developing metropolis.
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