Thane > Municipal decision and immediate reactions
Thane: The Thane Municipal Corporation (TMC) general body on Monday approved an upward revision in property levies, increasing property tax for residential properties by 12% and for non‑residential properties by 20%, and introducing a new property transfer fee pegged to the government‑approved market value of authorised properties.
The move shifts part of the valuation method away from the long‑used square‑foot calculation: the corporation will now levy the transfer fee at 0.5% of the government‑approved market value for authorised properties, Times of India reported. The decision was passed with little resistance in the House, though it generated vocal opposition outside the chamber.
Political fallout and party responses
Opposition corporators and party leaders criticised the timing and substance of the hike. BJP deputy mayor and corporator Krishna Patil said the proposal was cleared without adequate discussion and the party intends to write to Chief Minister Devendra Fadnavis opposing the move, Times of India reported. BJP corporator Narayan Pawar warned a higher tax could increase arrears and suggested the corporation explore advertising revenue as an alternative.
The NCP (SP) leader of opposition Ashraf Pathan did propose modifications before the proposal was approved, while party district president Manoj Pradhan issued a statement strongly opposing the increase. Quoting the Maharashtra Municipal Act, Pradhan said corporations must provide civic services in return for taxes and accused the TMC of imposing a fresh burden on residents despite continuing service shortfalls.
"But in Thane, despite the TMC failing to provide even basics, it is now burdening citizens with a tax hike, which is unjust," Manoj Pradhan, NCP (SP) district president, said, according to Times of India.
Industry and market concerns
Real‑estate representatives warned the rise may not dent new property sales but could affect rentals and resale transactions. Jitendra Mehta, past president of Credai‑MCHI, Thane, said the hike is unlikely to affect new sales but could hit the rental market—residential and commercial—and the resale segment, Times of India reported. A local real‑estate agent noted leasing owners would likely pass on the additional cost to tenants and that the rise could influence transaction volumes.
What the figures mean for homeowners
The civic department offered an illustrative calculation indicating the impact on a typical flat. Using their cursory computation for a 1,000 sq ft flat bought in 2026 in Balkum (Majiwada‑Manpada), property tax would increase from ₹25,039 to ₹28,305 annually under the new rates, Times of India reported. The corporation said this is the first revision in about eight years.
- Residential tax hike: 12%
- Non‑residential tax hike: 20%
- New transfer fee: 0.5% of government‑approved market value of authorised properties
| Item | Old | New |
|---|---|---|
| Annual tax on 1,000 sq ft flat (Balkum example) | ₹25,039 | ₹28,305 |
| Transfer fee (method) | Per sq ft convention | 0.5% of govt‑approved market value |
Civic services, timing and public concern
Residents and opposition leaders pointed to persistent civic problems—solid waste management, overflowing drains, monsoon waterlogging, insufficient footpaths and encroachments—arguing service delivery remains inadequate even as the TMC raises revenue. The criticism underscores a common local expectation: tax increases must be matched by improvements in basic services.
Leader of the House and Shiv Sena corporator Hanumant Jagdale, who is also a developer, defended the increase as necessary and described it as marginal and absorbable by citizens for the welfare of the city, Times of India reported.
Next steps and what residents should watch for
The TMC has yet to release full details and the final plan, which will clarify assessment bands, exemptions (if any), and the mechanism for applying the transfer fee. Officials say the actual impact on revenue and household budgets will be visible only after these specifics are published.
Homeowners, landlords and buyers in Thane should examine the TMC's forthcoming notification carefully for valuation tables, applicability thresholds (for example flats under or above 500 sq ft), and timelines for implementation.
Reporting: Details in this article are based on reporting by the Times of India as cited in the TMC general body proceedings and statements from party leaders and industry representatives.
