The Brihanmumbai Municipal Corporation (BMC) has collected ₹3,722 crore in property tax since April 2025, surpassing 50% of its annual target of ₹7,341 crore in the first half of the fiscal year. Officials say the achievement is notable, but with municipal staff now slated for election duties, collecting the remaining ₹3,619 crore over the next four months presents a significant operational challenge.
The civic body revised property tax rates this year to 15.89%, in line with updated Ready Reckoner valuations, which determine property taxation and stamp duty. Major defaulters with outstanding dues were specifically targeted, and several high-value arrears have been successfully recovered. Last month, nearly ₹25 crore was recovered after properties listed for auction prompted immediate payment, encouraging the BMC to list another seven properties valued collectively at ₹63 crore. “Collections in the first half have been impressive,” an official said. “Listing properties for auction has motivated many defaulters to settle their dues, but election-related staff deployment could disrupt this momentum.”
BMC property tax collections have faced persistent hurdles in recent years, including exemptions for residential properties up to 500 sq ft, lack of tax revisions since 2015–16, and legal ambiguities in new tax calculation methods. Despite these challenges, intensified enforcement on major defaulters helped the civic body collect a record ₹6,388 crore in 2024–25, exceeding the previous target of ₹6,200 crore—the highest in over a decade. However, cumulative outstanding dues remain substantial, now totalling ₹22,000 crore, including penalties accrued over the past 15 years. Experts note that sustained enforcement, timely valuations, and targeted recovery drives are essential to maintain fiscal health while supporting equitable urban governance.
Analysts also highlight the importance of maintaining service continuity during election periods, ensuring that essential civic operations like property tax collection are not severely impacted. “Balancing electoral duties with municipal revenue operations is crucial to sustain city infrastructure and public services,” said an urban finance expert. Looking ahead, BMC plans to continue auction drives, incentivise timely payments, and optimise staff deployment to meet annual collection targets. Officials stress that these measures not only secure municipal finances but also underpin Mumbai’s broader goals of resilient, well-managed, and sustainable urban development.
Mumbai Collects Over Rs 3,700 Crore Property Tax in First Half
