Sena's BMC poll sops include discounted property tax, free medical services

BJP assures exemption in road tax & water cess

In a bid to lure Mumbaikars in the run up to the election to the BrihanMumbai Municipal Corporation (BMC), Shiv Sena on Thursday announced a slew of promises including scrapping of property tax for residents of 500 sq ft, concession in property tax for homes between 500 sq ft and 700 sq ft and free medical services. The proposed health cover will be named after Shiv Sena supremo late Bal Thackeray.

Besides, housing societies, who have already implemented rain harvesting scheme, will also be entitled for concession in the property tax.

Sena president Uddhav Thackeray made these announcements as the voting for the 227 member BMC is slated for February 21. 

On the other hand, BJP city chief Ashish Shelar took a pot shot at Thackeray saying that there was nothing new as the BJP legislator from north west Mumbai had already requested the chief minister Devendra Fadnavis to waive proper tax for residents with 500 sq ft home. 

Further, in a bid to counter Shiv Sena, Shelar assured that Mumbaikars will be exempted from the payment of 13% road tax until city roads are made pot hole free. BMC annually collects Rs 600 crore through road tax. Shelar, who has hinted that BJP was ready to go solo if the talks with Sena are failed, said his party was committed to free Mumbaikars from tax terrorism.

Further, BJP plans to write off water cess until the Mumbaikars get 24 hour water supply.

Thackeray made it amply clear that the implementation of these promises will not have any extra burden on the BMC exchequer. He hinted that BMC with an annual budget of Rs 37,000 crore and deposits of Rs 51,000 crore is financially capable to bear those expenses in five years (2017-22).

BMC has recently changed the property tax calculation from the earlier Rateable Value System (RVS) to the new Capital Value System (CVS). Under the RVS, the tax was calculated based on the maximum amount of rent that the property could fetch in a year. The CVS is based on the market value of the property. Mumbai collects around Rs 10,000 crore.

As per the new tax rules came into effect from April 1, 2015, BMC had made 40% increase in property tax rates in Mumbai both on residential properties having less than 500 square feet and constructed before 31st March, 2015 as well as on commercial properties.

Thackeray said that his party will announce other schemes in party's manifesto to be released in a due course of time.

Thackeray's move comes when Shiv Sena and BJP are currently engaged in seat sharing talks. BJP, which contested assembly poll independently and won 123 seats, has offered 50:50 seat sharing formula with Sena. BJP is insisting that it will field on 115 seats leaving the balance to Sena.