Mumbai, India's richest municipality, wants to tax garbage to boost revenue
Mumbai, India’s financial hub and the nation’s richest municipality, is exploring new ways to boost revenue as a slowing economy hurts earnings from real estate.
This includes tax on garbage collection and additional levies on services such as issuing birth certificates. The Municipal Corporation of Greater Mumbai, which covers half the area of the city of New York but houses 50% more people, sees revenue dropping 5% from its previous target to 238.5 billion rupees ($3.4 billion) in the year through March 31.
Deteriorating finances in Mumbai -- whose budget is bigger than several Indian states -- bodes ill for India’s economic revival because local expenditure has a bigger impact than that by Prime Minister Narendra Modi’s administration. Every 1 rupee spent by states yields 1.07 rupees in extra output versus 0.4 for the federal go nment, according to a working paper published by the Reserve Bank of India.
For now, Mumbai plans to increase spending by almost 9% in the year starting April 1, including on better storm-water drains to prevent flooding during the city’s annual monsoon, and an ambitious and controversial coastal road that will hug the city’s shoreline from Marine Lines — called the Queen’s Necklace — in the south to the crowded northern suburbs.
It’s unclear though how it will achieve that goal given tax collections on the sale of apartments and offices in India’s priciest property market missed the current-year’s target by 12%.
Faced with a fall in revenues from the major sources of income, “the corporation plans to adopt innovative measures for resource mobilization,” Care Ratings economists, including Madan Sabnavis, wrote in a report. These include “measures to recover outstanding dues of property tax and water tax by way of issuance of notices to defaulters, disconnection of water connections, attachments and auction of properties,” they wrote.
Mumbai’s municipal body expects income on its 786.7 billion rupees of investments to drop 11% due to lower bank interest rates in the next financial year. It also doesn’t see any additional increase in compensation from the federal go nment. Until 2017, Mumbai earned a third of its income through octroi, or an entry levy, which was replaced with a nationwide goods and services tax after Modi promised to compensate for a portion of the reduction.
India’s economic slowdown means the federal go nment hasn’t been able to transfer the funds beyond September. The remainder will be issued in two tranches, junior finance minister Anurag Thakur told parliament Feb. 3.
译文来源：三泰虎 http://www.santaihu.com/49308.html 译者：Joyceliu
if the municipality start controlling the pilferage of resources , they can save a lot, in all they inflate the bills and swindle the money,we the public at the mercy, if any one question, immediately they are been targeted by other dept
Ban Nude Leggings
Now morning garbage collectors will become slumdog millionair
A simple question...how much of bmc revenues go to salaries?
Yes. BMC will colect a lot of taxes on garbage because THERE IS A WHOLE LOT OF GARBAGE IN MUMBAI - LIVING AND NON LIVING THINGS. GO AND TAX THEM SO THEY GO BACK TO WHERE THEY CAME FROM - GO BACK TO YOUR OWN KONTRI.
It is surprising that within a few months of the current go nment being sworn in, the cost of milk (basic necessity for a common man) has been hiked not once but twice. And no one has even opened spoken about it. This shows, no one pays for their own and that they are taken care of. Under such circumstances, taxing garbage comes as no surprise. Very soon, they will charge for breathing. Mumbai has reached its dead-end, in all respects.
BMC should clear and clean and keep free all footpaths in Mumbai to walk free. There are hindrances/ encroachments and blockages everywhere at Main road, streets and near every railway stations. These hawkers zones should be shifted at open spaces or at chowpatty area
It's a pity. Soon we will be selling dead bodies also to survive in this country. Total mismanagement of finance.
It is nothing but funding the luxurious living of our Corporators. They want a new air-conditioned car every year, and the official car is also used for personal use also, all expenses funded by tax payers.
Wow !! Another tool devised to squeeze money from the helpless citizen.
All because of the mismanagement of the previous BJP Government
BMC is being run by Shiv Sena for last 10 years.
Mumbai is the world's largest polluter which throw 90% untreated sewage into sea,all money spent on treatment plant is eaten away by the corrupt municipality employees .
First throw out 85% of corrupt municipal employees
Mumbai is ruined by Shiv Sena.
They are gangsters and they know how to get family richer and richer.there was only one but now even son and uncle joins in.
One of the most corrupt municipalities in the world. The problem is co ption, co ption and nothing else. Openly and accepted. This won't change anytime soon nor the fortunes of the city will.
Taxing for garbage is good, even if city has surplus money. I have seen rich people too in Bangalore do not want to spend 50 Rs to dispose huge pile of thermocol or their old bed.
With daily budget of nearly Rs. 100 crore, still short of money? its the purest form of co ption!!
Instead of cutting back on their own expenses (cough bribez cough), they want to increase taxes on regular tax paying citizens to make sure that their revenue does not fall. Shabbas India, you never disappoint.
This has to happen after GST ! GST has sucked budgetary revenue from states and municipal corporations !
High time to rename BMC to BCC ( biggest corrupt corporation )..They need to show accountability for the blood ( taxes ) they have oozed out from the citizens b4 thinking of any new taxes.
worst and most corrupt municipal corporation in the whole world. eats up the money for no reason. and then troubles the citizens. the potholed roads filled with filthy slums are testimony to this. BMC takes lot of illegal money from slums and service contractors responsible for the potholed roads. Still they want to trouble and tax honest and poor citizens who work hard and honest.
No amount of money is sufficient in this country to manage things because of the greediness.
people should encourage to reduce garbage...this is good from the point of this
It is time that the people are taxed for services.
Please edit the city name NewYork...it seems text are edited from some other source. Be original. Thanks
What an idiotic idea? People will start dumping garbage wherever they can instead of channelling thru to Municipal corporation. Then the BMC will have to firefight with infections and epidemics, provision more staff for cleaning the city. Penny wise, pound foolish.
Taxing citizens to BOOST TAX REVENUE is not the right policy in a Democratic Republic Independent country. Instead, re-assess the short falls and take corrective measures. Demand the GST share first, as Tax collected cannot be retained or allocated for any other purposes. Only after exhausting all available revenue sources tapped, taxing public can be considered. BOTTOM LESS BUCKET CANNOT HOLD WATER. JAI HIND.
Are you aware the property tax in Mumbai is Rs 22000/- per year for a flat of small two bedroom unit.Property Tax for the same size of flat in Gurgaon is Rs 600/- per year. Still Gurgaon is clean and Mumbai is the worst. BMC is responsible as well as the corporators.
THIS YEARS BUDGET THEY HAVE ALMOST 20000 CRORES UNSPENT WHY THEY WANT TO COLLECT MORE FUNDS APPARENTLY TO SURREPTITIOUSLY FILL THEIR POCKETS BLOODY ROGUES CROOKS CHEATS OPPORTUNISTS.