BMC Brings 17,219 Slum-Based Commercial Units Under Tax Net; Eyes ₹613 Crore Revenue Boost

Mumbai: In a significant move to expand its tax base, the Brihanmumbai Municipal Corporation (BMC) has assessed 17,219 commercial establishments in slum areas and brought them under the property tax ambit. The initiative, launched in September 2024, is expected to generate approximately ₹613 crore in revenue, including penalties.
So far, the civic body has recovered around ₹268 crore — about 43% of the projected revenue.
Mumbai is home to nearly 2.5 lakh slum structures, with an estimated 20%—or 50,000—being used for commercial purposes such as shops, warehouses, small industries, and hotels. Officials said since these establishments benefit from civic infrastructure, it is necessary they contribute through taxes.
The property tax assessment is based on the area of the structures, following a comprehensive survey across all 24 administrative wards. The BMC anticipates collecting ₹473 crore in taxes, with an additional ₹140 crore from penalties on defaulters.
Data reveals that 11,475 commercial slum properties in the Western suburbs alone account for ₹428.55 crore in dues, including ₹130.10 crore in penalties. Of this, ₹253.84 crore has already been collected. In the Island City, 1,802 properties were assessed, generating dues of ₹43.96 crore, of which ₹12.69 crore has been recovered. The Eastern suburbs recorded 3,942 properties with dues of ₹11.05 crore and ₹2.24 crore recovered so far.
Additionally, water usage in these commercial slum establishments will now be charged at commercial rates.
While the move is expected to bolster the city’s finances and improve infrastructure for slum dwellers, some citizens have raised concerns that the taxation may be seen as legitimizing illegal structures. However, a senior civic official clarified, “Registering these units for tax purposes does not imply their legality.”