TMC Approves Property Tax Hike and Restructures Transfer Fees in Thane
The Thane Municipal Corporation (TMC) approved proposals to increase property taxes and revise property transfer fees during its general body meeting in Thane on Monday. Passed without prior discussion, the dual tax increase marks the first revision in the civic body's property tax structure since the 2018–19 financial year.
Under the newly approved structure, residential property tax will increase by 12%, while commercial and non-residential property tax will rise by 20%. The municipal civic body expects to generate an additional annual revenue of ₹104.67 crore from the hike, which will be utilized to fund expanding urban infrastructure and civic amenities.
Justifying the revenue measure, Thane Municipal Commissioner Saurabh Rao stated that rapid urbanization and the growing demand for improved civic services require enhanced municipal funds. He noted that property taxes had not been revised in years, making the adjustment necessary to maintain infrastructure standards across the city.
The decision drew criticism from opposition leaders. Slamming the move, Nationalist Congress Party (SP) District President Manoj Pradhan stated that the municipal corporation is bound to provide basic civic services in return for taxes, adding that the TMC is placing a steep burden on citizens despite failing to provide standard infrastructure like roads and drainage.
In addition to the tax hike, the corporation restructured property transfer fees, which are levied when updating tax records following a sale, gift deed, or inheritance. Rather than the earlier flat rate ranging from ₹1,000 to ₹10,000 based on property area, the TMC will now charge 0.5% of the government-approved market value. Under the revised rate, a property valued at ₹1 crore will attract a transfer fee of ₹50,000. Fees for inheritance transfers and unauthorized properties have also been scaled up.
In contrast, the civic administration withdrew its proposal to hike fares for the Thane Municipal Transport (TMT) bus service. The initial plan sought to generate an additional ₹33.48 crore annually by increasing regular bus fares by ₹3 to ₹25 and air-conditioned bus fares by ₹3 to ₹7. The proposal was dropped to align with the state government's policy of establishing uniform transport fares across the Mumbai Metropolitan Region.
