BMC Sets Record in Property Tax Collection; Collects ₹6,172 Crore

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has achieved a historic milestone in property tax collection for the financial year 2024-25, collecting ₹6,172 crore. This marks a 30% increase compared to the previous fiscal year, making it a significant achievement. The target for this year's collection was ₹6,200 crore, achieving 99.54% of the goal.

By 10 PM on March 31, the BMC had collected approximately ₹6,171.75 crore, leaving a shortfall of just ₹21 crore. Property tax is levied on over 700,000 properties in Mumbai, making it one of the corporation’s most vital revenue sources.

Senior BMC officials attribute this success to consistent follow-ups, improved recovery measures, and citizen compliance. According to Gajanan Bellale, Civic Assessor and Collector, the annual property tax target typically increases by 10-12%. Additional efforts this year, such as sending notices, recovering unpaid dues, and attachment proceedings, contributed to the surge in revenue.

BMC also managed to recover ₹1,600 crore in outstanding dues from the previous fiscal year, pushing the actual tax collection beyond ₹7,500 crore. Delays in bill generation had impacted last year’s collection, but timely actions this year helped recover arrears.

The initial estimate for property tax revenue in 2024-25 was ₹4,950 crore, but this was revised to ₹6,200 crore in the February budget. Tax collections have fluctuated in recent years, with ₹4,994 crore collected in FY 2022-23 and ₹5,208 crore in FY 2021-22. For 2025-26, BMC aims to collect ₹5,200 crore.

Despite this success, BMC faces financial strain due to large-scale infrastructure projects. However, property tax rates in Mumbai have remained unchanged since 2015, even though regulations mandate a hike every five years. A scheduled revision in 2020 was postponed due to the COVID-19 pandemic, and no increase has been implemented since.

Apart from property tax, BMC is exploring other revenue sources such as solid waste management (SWM) fees and taxes on commercial units in slum areas. Currently, property tax remains the second-largest revenue source for the civic body, following water and sewerage charges.

This achievement highlights the efficiency of the administration and the cooperation of citizens. It is expected to give a new boost to the development of Mumbai’s infrastructure.