**Mumbai: BMC Collects Rs 3,100 Crore in Property Tax in First Half of FY 2025–26**
The Brihanmumbai Municipal Corporation (BMC) has successfully collected Rs 3,100 crore in property tax between April and September, marking the first half of the 2025–26 financial year. This amount represents over 40% of its annual target of Rs 7,700 crore.
A crackdown on major defaulters has played a significant role in recovering long-pending dues, according to a senior civic official.
### Challenges in Collection
In recent years, the municipal corporation’s property tax collection has faced multiple challenges. A key reason for the decline was exemptions granted to residential properties up to 500 sq ft, coupled with the absence of any tax revision since 2015-16. Additionally, legal complexities surrounding new methods of property tax calculation further hindered revenue collection during the 2023-24 financial year.
However, since last year, the BMC has focused on targeting big defaulters, which helped it achieve a record-breaking revenue collection of Rs 6,388 crore for the financial year 2024-25—surpassing the previous year’s collection of Rs 6,200 crore and marking the highest revenue since 2010.
### Tax Revision and Enforcement Measures
In May 2025, the BMC restructured property tax rates to 15.89% based on the revised Ready Reckoner (RR) rates. These RR rates are used to determine property valuations for stamp duty and taxation purposes, ensuring a more accurate and fair tax calculation.
Alongside the revision, authorities intensified efforts to recover dues from major defaulters whose outstanding amounts run into crores. The civic body has recovered a significant portion of arrears and is now planning to auction properties of persistent defaulters who have failed to clear their dues despite repeated warnings.
### Impact on Revenue and Outstanding Dues
“These combined efforts have led to the recovery of 40% of the targeted property tax for the current financial year—an amount that is typically collected only by December,” said a senior official from the Assessment and Collection department.
Property tax remains the second-largest source of revenue for the municipal corporation. However, cumulative outstanding dues pending since 2010 have ballooned to Rs 22,000 crore, including penalties accrued over the past 15 years.
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https://www.freepressjournal.in/mumbai/mumbai-news-bmc-collects-3100-crore-in-property-tax-in-h1-202526-achieving-40-of-annual-target-amid-crackdown-on-defaulters