No tax hikes likely but revenue a worry

 

MUMBAI: It would be surprising if the municipal body announces tax hikes in a pre-poll year in its 2015-16 budget to be tabled on Wednesday.

Also, with octroi to be soon replaced by goods and services tax, the BMC is considering to tap new revenue sources. The civic administration is unlikely to earn the revenue that is generated through octroi, around Rs 7,500 crore a year, by further taxing the common man, said sources.

"There is no scope to hike general tax, fire tax or education cess as these have reached their limits. Also, sewerage tax and wheel tax, which are part of water tax and property tax respectively, can neither be raised separately nor become an alternative for octroi. Hence, the Centre plans to replace octroi with a new system probably from March 2016," said a senior civic official.

The BMC, one of the richest civic bodies in the country, is looking for new ways to generate revenue. "The BMC can get 1%-2% stamp duty on property from the state. It needs money to provide roads, footpath, water, health, education and other facilities as Mumbai is developing fast in terms of real estate," said the official.

In 2013, the BMC had informed the state about its financial projections and made a few suggestions to increase earnings. "The Centre earns Rs 35,000 crore and the state Rs 14,000 crore from Mumbai. Of this, the BMC should get at least 10% revenue to strengthen basic infrastructure," said the official. "The civic body should also get 100% education cess. The state collects education cess from all local bodies and returns 50% of the establishment cost, which is unfair."

But a bigger problem BMC faces is containing runaway from corruption and expenses.

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MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.

Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.