The Brihanmumbai Municipal Corporation (BMC) has initiated a survey of commercial slum properties and plans to impose property tax on floors within slums that are being used for commercial purposes. The civic body intends to implement this taxation starting in the next financial year.
The BMC has analyzed data from holders of gumasta licenses (shop and establishment registrations) and identified around 3,500 commercial slums across Mumbai. “We have already begun sending property tax bills to these establishments,” said an official from the BMC’s assessment and collection department, speaking anonymously.
The official also mentioned that the BMC is considering extending the property tax to all floors in slums that are used for commercial activities, with further details of this proposal still under discussion.
According to the 2011 census, Mumbai has approximately 16 lakh slum structures, some of which could be redeveloped under the slum redevelopment scheme.
Previously, the BMC charged an annual service fee of ₹100 for residential slums and ₹250 for commercial ones until 2006-07. In 2016, the civic body proposed a revised tax structure ranging from ₹2,400 to ₹18,000 annually, depending on the type and size of the slum properties. This proposal was initially included in the budget presented by then-BMC chief Ajoy Mehta. However, in 2018, the BMC abolished property tax for residential properties up to 500 square feet in area, putting the taxation of slum dwellers on hold.
With the new plan to tax commercial slums, the BMC estimates it could generate approximately ₹200 crore in revenue annually.
