<!– /11440465/Dna_Article_Middle_300x250_BTF –>On the one hand the Brihanmumbai Municipal Corporation (BMC) has asked its sister concern, the Brihanmumbai Electricity Supply and Transport (BEST) Undertaking, to come out with ways to increase revenue and cut cost, and on the other the civic body has shot down their proposal of allowing the Undertaking to have a minuscule share of the property tax earned by BMC. The BEST had proposed that the BMC share 1 per cent of the total revenue earned by it through property taxes annually.The approximate amount earned by the civic body in 2016-17 was over Rs 5,000 crore and the BEST would have got a mere Rs 50 crore out of it. The BEST wanted the civic body to create a new bracket on the basis of which property tax is determined. The BMC currently has a capital value-based property tax system in which property tax is calculated on five factors — price of property, area, age of the building, nature of property and type of construction.This came to light on November 21, when the first meeting over the BEST budget for 2018-19 was discussed by the BEST committee and they were intimated by the administration that the BMC has refused to clear the proposal of allowing sharing of revenue generated out of property tax. The Committee also passed the budget for 2016-17 where they faced a surplus of Rs 242 crore and in 2017-18, there was a deficit of Rs 880 crore.”The BMC is suggesting cost reduction measures but now they have rejected the our proposal to earn a mere one percent from property tax. We were not even informed either by the BEST or BMC,” said Sunil Ganacharya, member, BEST Committee. The administration on the other hand said that the BMC refused their permission almost a year ago.In 2013, the BEST first sent this proposal to BMC which was approved and sent to the government. Sources said that the government suggested some changes which was done by the BEST and resent to the BMC for approval. If it would have been approved then it would have meant that every Mumbaikar owning a house in the city would have paid for sustenance of BEST.HIT HARDWith deficit hitting Rs 880 crore for the year 2018-19, the BEST cut down the procurement of 303 new buses to 185. This curtailment was due to the heavy cost of Rs 100 crore which was being paid by the BMC. The BEST recently added six electric buses at cost the of Rs 10 crore to their fleet.

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BMC won’t share 1% of property tax with BEST