Thane Hikes Property Tax Up To 20%

The Thane Municipal Corporation (TMC) has approved a proposal to hike property taxes by up to 20% in a move to generate additional revenue for urban infrastructure and civic amenities. The decision was made during the general body meeting on Monday.

The new property tax structure, which has been revised for the first time since 2018-19, will see a 12% increase in residential property tax and a 20% increase in commercial property tax. This is expected to generate an additional annual revenue of ₹104.67 crore for the municipal civic body.

Thane Municipal Commissioner Saurabh Rao justified the tax hike, stating that rapid urbanization and the growing demand for improved civic services require enhanced municipal funds. He added that property taxes have not been revised in years, making this adjustment necessary to maintain infrastructure standards.

However, the decision has drawn criticism from various political parties. Nationalist Congress Party (NCP) District President Manoj Pradhan slammed the move, saying that the corporation is bound to provide basic civic services to residents in return for taxes, but in Thane, despite failing to provide even standard infrastructure like roads and drainage, the TMC is now unjustifiably burdening citizens with a steep tax hike.

In addition to the property tax hike, the TMC has also restructured property transfer fees. Instead of the previous flat rate ranging from ₹1,000 to ₹10,000 based on property area, a fee of 0.5% of the government-approved market value will now be levied. For example, a property worth ₹1 crore will now attract a transfer fee of ₹50,000.

In a relief to daily commuters, the TMC has withdrawn its proposal to increase bus fares for the Thane Municipal Transport (TMT). The initial plan aimed to generate an additional annual revenue of ₹33.48 crore by increasing regular bus fares by ₹3 to ₹25 and AC bus fares by ₹3 to ₹7. However, the proposal was scrapped to align with the state government's policy of establishing uniform transport fares across the Mumbai Metropolitan Region (MMR).

The property tax hike is expected to have a significant impact on Thanekars, who will now have to pay more for their properties. The TMC hopes that the additional revenue generated from the tax hike will help improve civic amenities and infrastructure in the city.

In recent years, Thane has experienced rapid urbanization, with a growing population and increasing demand for civic services. The TMC has been struggling to keep up with the demand, and the property tax hike is seen as a necessary measure to generate additional revenue.

The decision to withdraw the TMT bus fare hike proposal has been welcomed by commuters, who will now not have to pay more for their daily travel. The TMC's decision to align with the state government's policy of uniform transport fares across the MMR is seen as a positive move, which will help ensure that commuters are not unfairly burdened with high fares.

Overall, the property tax hike and the withdrawal of the TMT bus fare hike proposal are significant developments in Thane, which will have a major impact on the city's residents and commuters.

The TMC's decision to hike property taxes and restructure property transfer fees is a clear indication of the city's growing needs and the need for additional revenue to fund civic amenities and infrastructure. While the decision has drawn criticism, it is seen as a necessary measure to ensure that Thane continues to develop and grow as a city.

In conclusion, the Thane Municipal Corporation's decision to hike property taxes and withdraw the TMT bus fare hike proposal is a significant development that will have a major impact on the city's residents and commuters. The additional revenue generated from the tax hike will help improve civic amenities and infrastructure in the city, while the withdrawal of the bus fare hike proposal will provide relief to daily commuters.