Panel members oppose BMC move to set up body to review tax rates

In the proposed 2021-22 municipal budget, the Brihanmumbai Municipal Corporatioon (BMC) has proposed to form a separate ‘Fee Revision Authority’- an independent statutory body that will implement necessary revision of the municipal tax rates.

The revenue of the civic body has fallen drastically last year, as the civic body was able to collect only 40 per cent of the amount it had estimated in 2020-21 municipal budget. In the budget statement, BMC stated that while the rate of taxes remains the same, the day-to-day expenditures have been increasing regularly, hence it is necessary to revise the rates.

“To decide the rate of these fees charges, it will be explored to appoint a separate independent Fee Revision Authority” – the BMC stated in its budget statement.

Municipal Chief – Iqbal Singh Chahal also stated that the BMC has been falling short of revenue due to stagnant revenue rates.

“The need to have an independent body for timely revision of taxes has now become important for the BMC, often it becomes difficult for the elected bodies to take such decisions and in the meantime, the civic body loses its revenue as the rate of tax are not revised time to time,” said Chahal while addressing the issue.

According to the Mumbai Municipal Corporation (MMC) Act, the civic body will require authorization from the state government for forming a new authority. In the statement BMC had also mentioned that if required, amendments will be made in the MMC Act.

This proposal has not gone well with standing committee members and senior municipal corporators. They have alleged the civic administration of undermining the importance of the standing committee. The standing committee has the sole authority of clearing the propositions of all the major projects and amendments in the civic body. The public representatives have alleged, by forming a new committee the BMC may increase the rate of taxes from the back door.