13 February 2025
Mumbai: Following the BMC's announcement of levying property tax on commercial units in slums, Samajwadi Party (SP) legislator Rais Shaikh has written to the BMC demanding that the civic body conduct the socio-economic impact assessment study by renowned institutions such as Tata Institute of Social Sciences (TISS) to understand the far-reaching ramifications on the poorest of the poor in the city. The move will have a catastrophic impact on the informal sector, with over 3 lakh people losing their livelihoods and becoming unemployed, said Shaikh.
In his letter to BMC chief Bhushan Gagrani, Shaikh stated that the BMC Budget for 2025-26 proposes to levy property tax on commercial units in slums. "This move indicates the BMC's impending financial crisis due to the mismanagement of its finances. It will have the potential significant impact of rendering over 3 lakh people unemployed, losing their livelihoods, with the poorest of the poor being hit hardest by this decision," said Rais Shaikh, MLA.
Shaikh has demanded that the move will have an adverse impact on the sustainability of the MSMEs which provide employment to lakhs of people. "Levying property tax on commercial units in slums will render MSMEs unsustainable, as it imposes an additional financial burden. This move will have a significant impact on the informal sector, and lakhs of people will lose their livelihoods, leading to unemployment. It is completely unjustifiable to consider commercial units in slums on par with those in malls and commercial complexes for the purpose of levying property tax," said Shaikh.
Shaikh further stated that the rise in unemployment may lead to social disharmony and a potential increase in crime in the city. "Therefore, I demand that an socio-economic impact assessment study of the BMC's decision to levy property tax on commercial units in slums be conducted by renowned institutions such as TISS," Shaikh demanded.
According to the BMC, there are around 2.5 lakh slums in Mumbai. A significant number of these slum areas (at least 20%, i.e., 50,000 slums) are being used for commercial purposes such as small and large industries, shops, godowns, hotels, etc. The BMC expects to generate revenue of Rs 350 crore by levying property tax on the commercial units in slums.