In Mumbai, the civic body has taken a fresh step that could benefit many small homeowners. The Brihanmumbai Municipal Corporation (BMC) House has passed a proposal to raise the size of homes that are exempt from property tax. Earlier this exemption applied only to flats up to 500 square feet, but now the motion seeks to extend it to homes as large as 700 square feet.
This change was suggested by Shiv Sena (UBT) corporator Yashodhar Phanse, who says that many families living in apartments built under slum and chawl redevelopment projects are struggling with rising costs. Although these families get their homes at no cost, paying property tax and maintenance charges makes life in the city harder for them, pushing some to sell and leave Mumbai. The proposal is meant to ease their financial burden and help them stay in the city.
At present about 3.6 lakh properties in Mumbai enjoy tax exemption under the old 500 sq ft rule. If the new motion becomes policy, more residents could save money each year. But it’s important to note that the motion still needs approval from the civic administration before it becomes official.
There has also been some criticism. Former BJP MP Manoj Kotak pointed out that a similar idea was already introduced in 2018 but never got final approval. He feels the current motion may not add much unless it moves ahead with real action.
Property tax is one of the main revenue sources for the BMC, bringing in over ₹6,000 crore last year, so any change to exemption rules could also affect the civic body’s funds.
