BMC Eyes Commercial Slum Tax to Boost Revenue Amid Mega Projects

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has begun surveying commercial slums in Mumbai, marking the first step toward levying a property tax on these structures. This move comes as the civic body explores fresh revenue streams to fund ambitious projects worth ₹1.5 lakh crore, following significant revenue loss due to its property tax waiver on residential properties up to 500 square feet.

Deputy Municipal Commissioner Vishwas Shankarwar confirmed the ongoing survey, stating, “After the survey, we will know how many commercial slums are in the city.” Officials revealed that the property tax will be calculated based on the size and ready reckoner rate of the property, with the initiative potentially generating ₹200 crore annually.

This isn’t the first time the BMC has targeted slum properties. Prior to 2006-07, the civic body charged a nominal service fee for residential and commercial slum structures, later revising these rates in 2016. However, taxation on slum properties was halted in 2018 with the tax waiver for smaller residential units.

The BMC, which has set a property tax collection target of ₹6,200 crore for the 2024-25 financial year, has already achieved 68% of this year’s target, collecting ₹5,847.68 crore as of December 2024. Despite significant revenue collections, critics have slammed the decision to tax small commercial slum enterprises, labeling it unfair. Sureshchandra Rajhans, president of the Congress Slum Cell, remarked, “It is wrong to compare a shop being run in a slum house with one in a proper building.”

The tax rollout is expected to begin from the next financial year, with the final policy being shaped post-survey.