Daijiworld Media Network- Mumbai

Mumbai, Feb 7: The Brihanmumbai Municipal Corporation (BMC) has announced the imposition of property tax on all commercial establishments in slum areas but clarified that this move does not legalise unauthorised structures.

The civic body’s assessment and collection department has begun surveying these establishments as part of the taxation process. Under the Mumbai Municipal Corporation Act of 1888, property tax is levied on lands, buildings (both raw and concrete), and other properties within the BMC’s jurisdiction.

The decision comes in response to the growing number of commercial establishments operating in the city's slums. Mumbai has approximately 2.5 lac slum units, of which around 50,000 (about 20%) are used for business purposes, including industries, shops, godowns, and hotels.

Civic chief and administrator Bhushan Gagrani, in his budget speech on February 4, projected an additional revenue of Rs 350 cr in 2025-26 from the new property tax on commercial units in slums. He emphasized that since these businesses benefit from BMC-provided infrastructure, it is necessary to bring them under the tax net.

However, some citizens have raised concerns, arguing that imposing property tax on unauthorised commercial units may be perceived as legitimising them. Addressing these concerns, the BMC referred to Section 152(A) of the Mumbai Municipal Corporation Act of 1888, which clearly states that levying a tax or penalty on an unauthorised structure does not legalise it.

The civic body reiterated that taxation is a regulatory measure and should not be mistaken for approval or regularisation of illegal constructions.