The tax, which was increased by 10 per cent in April this year and which followed another hike in October 1997, has placed real estate beyond the reach of the middle and lower income groups, residents say. It amounts to 20 per cent of a middle class resident's salary of Rs 5,000 to Rs 8,000 per month. In a memorandum to the municipal commissioner dated August 1, 1998, the Flat Owners' Association of Dahisar and Real Estate Agents Associations of Kandivli, Mira Road, Vasai and Malad point out that the tax has been raised by almost 200 per cent over the last few years.

According to Samrat Shukla, a resident of Borivli, the tax, which was Re 1 per sq ft three years ago, is now Rs 2.40 per sq ft for residentialpremises and Rs 7 per sq ft for commercial premises. At Kandivli, he points out, the tax earlier charged at 50-60 paise per sq ft is now Rs 2 per sq ft.

The memorandum points out that the annual increase in property tax is in no way compensated by improvement in the civic services and amenities the corporation is bound to provide. For instance, says R S Raichur, an Andheri resident, ``Since the early 80s, the BMC has been asking builders to deposit money in advance for development of infrastructure like roads, sewerage, storm water drains, etc. Yet, the BMC does not develop this infrastructure for years,'' he argues. To calculate property tax, the Assessment Department of the BMC first inspects a building after it has been issued an occupancy certificate. Then, it fixes the rent per square foot based on the amenities provided in the area. The rateable value of the property works out to 10.5 months' rent and a percentage of that is calculated as property or assessment tax per month. The standard rent isusually considered as nine per cent of cost of land plus six per cent of the construction cost.

Says Raichur: ``By increasing the property tax, the BMC is only usurping my fixed income.'' He says that if the BMC wants to increase the tax it should go to courts. ``Once the property is assessed, how can the BMC increase the tax,'' he asks. Raichur has already approached more than 150 cooperative housing societies in the suburbs and says he will soon file a public interest petition in the Bombay High Court.

Residents of Mahakali Caves in Andheri say civic services and amenities in the area are in no way commensurate to the property tax imposed on them. There are no municipal schools, no public toilets, the roads are in a pathetic condition, there are no markets and no post office. The 60 ft DP road proposed 10 years ago is yet to be constructed while the area continues to get flooded every monsoon.