After the BJP-led MBMC’s five-year term ended in August, commissioner Dilip Dhole, acting in his capacity as administrator, passed a resolution. The resolution introduced a new 10 per cent road tax beginning from April 1, 2023, in the twin city of Mira Bhayander. The Mira Bhayandar Municipal Corporation (MBMC) is utilising it as a window to broaden its tax net and boost finances while keeping political pressure at bay until the civic body elections are held.
Mira Bhayander Municipal Corporation’s Road Tax
The previous general assembly had passed a resolution allowing the concreting of all the key roads in Mira Bhayander. The estimated cost then was ₹1,150 crore. MBMC was facing a financial crunch because of the massive expenditure on the medical infrastructure during the pandemic. It asked for permission to raise the funds from the Bank of Baroda for the first phase.
The MBMC was given permission to borrow ₹500 crores from a bank and an equal amount from the MMRDA. However, there were conditions such as time re-payment, no diversion of funds, cleaning up pending instalments of existing loans, and creating new sources of funding and revenue augmentation.
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Repayment Of Loan Is The Reason
A senior MBMC official said that MBMC will have to pay the remaining ₹150 from their own pockets. To ensure that loan instalments are paid on time and that all conditions are met, MBMC decided to implement a new road tax for the twin city. This will be done in accordance with the rateable value specified under Section 148 of the Maharashtra Municipal Corporation Act.
The internal audit teams have given their opinion on the introduction of road tax. Every time the Mira Bhayander Municipal Corporation has tried to impose a road fee, the general body has turned down the idea.
The corporation has to augment its receipts for property tax revenue by 25 per cent. The reason behind this is to be eligible for central government grants for various projects. This came after instructions were provided by the Ministry of Finance (MoF) to the Navi Mumbai-based Directorate of Municipal Administration. The target for the year was set at 190 crores.
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