Mumbai BMC Targets Rs 6200 Crore in Tax Revenue
The Brihanmumbai Municipal Corporation (BMC) has reported its highest property tax collection in the past three years, with a total of Rs 5,069.77 crore recovered between April 2024 and February 2025. This achievement follows a revised target of Rs 6,200 crore, surpassing the initial goal of Rs 4,950 crore set for the year. The impressive collection puts BMC on track to meet its ambitious goal, with only one month remaining in the fiscal year.
The BMC’s assessment and collection department highlighted the final push for the remaining Rs 1,200 crore. As March traditionally sees a surge in tax payments, officials are optimistic about reaching the revised target. This uptick in collection is a significant recovery from the sharp decline in property tax revenues during the previous fiscal year, where the total collected was only Rs 2,860.60 crore, a sharp drop from Rs 4,994.15 crore in 2022-23.The BMC’s recovery process has been bolstered by focused efforts to clear pending property tax dues from previous years, contributing to the jump in figures this year. The property tax has been collected from various city zones, with the city area contributing Rs 1,557.87 crore, the western suburbs accounting for Rs 2,527.82 crore, and the eastern suburbs contributing Rs 977.39 crore.
These zones reflect the city’s diverse real estate landscape and differing tax-paying capacities.To increase revenues, the BMC has made a key policy shift by deciding to impose property tax on commercial slums, with an estimated collection of Rs 250 crore for the 2024-25 period. This new revenue stream, along with other ongoing initiatives, is expected to help the civic body strengthen its financial position and mitigate the revenue gap left by the abolition of octroi in 2015.Civic chief Bhushan Gagrani, in his budget address for the 2025-26 fiscal year, stressed the importance of diversifying revenue sources. He reiterated that property tax remains the BMC’s primary revenue generator, particularly in the wake of the loss of octroi, which had historically been a key contributor to municipal finances.
The BMC’s proactive approach includes issuing notices to defaulters, followed by the seizure of properties in extreme cases. These steps are aimed at improving tax recovery rates and ensuring that the corporation meets its financial obligations to fund the city’s ever-growing infrastructure needs.The property tax collection target for the next fiscal year set at Rs 5,200 crore, the BMC is focused on improving recovery systems and building a more sustainable and equitable financial structure. The shift towards broadening its tax base and encouraging timely payments from all sectors, including commercial properties and defaulters, reflects a forward-looking approach to governance.
Mumbai continues to evolve, the efficiency of the BMC in managing its revenue collection will play a pivotal role in ensuring that the city remains resilient in the face of growing demands for infrastructure, services, and urban development. The continued improvement in property tax collection demonstrates the civic body’s commitment to providing for the city’s future needs, while also strengthening its financial health.
