Mumbai News: BMC Brings 17,219 Slum-Based Commercial Units Under Tax Net; ₹613 Crore Revenue Expected

Mumbai: The BMC has assessed 17,219 commercial units located in slum areas and brought them under the property tax ambit, potentially generating approximately Rs 613 crore in additional revenue, including penalties. Since the implementation of this initiative in September 2024, the civic body has managed to recover around Rs 268 crores or 43% of the total tax amount.

Mumbai has approximately 2.5 lakh slums, with around 20% (50,000) used for commercial purposes such as industries, shops, godowns, and hotels. Since the BMC provides infrastructure to these establishments, it is essential to assess and recover property taxes from them. The revenue generated will support improved services and infrastructure for slum dwellers, as outlined in the budget.

Accordingly, the BMC has begun levying property tax based on the area of structures in slum settlements, following a detailed survey of commercial establishments within these areas. During the survey conducted across all the 24 administrative wards, the BMC assessed commercial slum structures and expects to collect around Rs 473 crore in property tax. In addition, penalties amounting to Rs 140 crore have been levied on certain establishments for non-compliance.

As per the civic data, BMC assessed 11,475 commercial properties in slum areas of the Western suburbs, estimating Rs 428.55 crore in dues, including Rs 130.10 crore in penalties, with Rs 253.84 crore recovered so far.

In the Island City, 1,802 properties were assessed with Rs 35.38 crore in taxes and Rs 8.58 crore in penalties, of which Rs 12.69 crore has been recovered. In the Eastern suburbs, 3,942 properties were assessed, with dues of Rs 9.48 crore, penalties of Rs 1.57 crore, and Rs 2.24 crore recovered.

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Water usage in commercial properties within slum areas will also be charged at commercial rates. However, there has been growing concern among citizens that the imposition of taxes might be interpreted as an official recognition of these illegal structures. However, a senior civic official said, "Registering these units for tax purposes does not imply their legality."