Opposition opposes BMC’s property tax exemption for five-star hotels

The Brihanmumbai Municipality’s proposal to waive four months of property tax on hotels where rooms have been taken over to quarantine high-risk contacts now faces strong opposition from the government. within the civic organ. A tax exemption should be given to citizens with homes under 500 square feet instead of five-star hotels, representatives of opposition parties said.

Last year, the BMC waived the property tax of Rs 22 crore for 182 hotels and lodges from April to June 2020 during the first wave. This year, in September, the BMC proposed to waive nearly Rs 41.9 crore in property tax on 234 hotels for the period February to May 2021, according to city officials.

This prompted a BJP representative from Vile Parle Abhijeet Samant to write a letter to the head of BMC slamming the Mumbai civic body’s decision to waive property tax for “wealthy” five-star hotels. “Five-star hotels in Mumbai were supposed to use their hotel rooms for free as Covid Care Center 2 (CCC2) and they charged rent for those rooms, so their property tax exemption should be revoked,” Samant wrote in his letter.

Samant added, “Hotels only received the promise of property tax exemptions if they provided their rooms free of charge as quarantine centers for international passengers coming to Mumbai airport.”

However, the hotels did not follow the conditions set by the BMC and charged the quarantined passengers. Hotels will now benefit from a property tax exemption if it is not revoked by the BMC, Samant added.

Samant added: “The property tax exemption for five star hotels will cost Rs 80 crore to BMC coffers. Not only that, but that too, being unfair to citizens who have to pay their property taxes after losing their jobs and going through financial hardship throughout the pandemic, ”Samant wrote.

Meanwhile, BMC opposition leader and congressional corporator Ravi Raja also opposed the tax exemption. “I am totally against the property tax exemption / exemption for five star hotels, we have already sent a proposal against this tax exemption offer to these hotels”

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Posted on: Wednesday November 24, 2021 10:55 PM IST

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