**Mumbai: BMC Collects Rs 3,100 Crore in Property Tax in First Half of 2025–26**
The Brihanmumbai Municipal Corporation (BMC) has 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 concerted crackdown on major defaulters has played a significant role in recovering long-pending dues, according to a senior civic official.
### Challenges in Property Tax Collection
In recent years, the municipal corporation’s property tax collection has faced several challenges. The decline in revenue was largely due to exemptions granted for residential properties up to 500 sq ft, combined with the absence of any tax revision since the 2015-16 financial year.
Adding to the difficulties, legal complexities linked to new methods of property tax calculation further hindered the BMC’s revenue collection during the 2023-24 financial year.
### Record-Breaking Revenue Collection
Since last year, the civic body has focused on targeting big defaulters, which helped collect a record-breaking Rs 6,388 crore in property tax for the financial year 2024-25. This figure surpassed the previous high of Rs 6,200 crore and marked the highest revenue collection since 2010.
### Tax Revision and Enhanced Enforcement Measures
In May, the property tax was restructured to 15.89% for the financial year 2025–26, based on the revised Ready Reckoner (RR) rates. These RR rates are used to determine property valuations for stamp duty and taxation purposes.
Authorities also intensified efforts to recover dues from major defaulters, with outstanding amounts running into crores. The civic body has successfully recovered a significant portion of these arrears. Moreover, the BMC is now planning to auction properties owned by 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 recovered by December,” said a senior official from the Assessment and Collection department.
Property tax continues to be the second-largest source of revenue for the municipal corporation. However, cumulative outstanding dues pending since 2010 have ballooned to Rs 22,000 crore. This figure includes 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