Pune civic budget: No rise expected in property tax next fiscal.

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In a recent announcement by the Pune Municipal Corporation (PMC), it has been indicated that there will likely be no increase in property tax during the upcoming civic budget for the next financial year. PMC administrator Vikram Kumar stated that the decision to increase taxes is a policy matter that is not currently under consideration.

Property tax stands as the largest source of income for the PMC, contributing approximately Rs2,000 crore annually to the administration's coffers. The potential decision to maintain the current property tax rates comes as a relief to the owners of approximately 11.3 lakh properties across various areas under the jurisdiction of the PMC.

While this move has been welcomed by civic activists, they emphasize the importance of the civic body focusing on the recovery of tax dues, particularly from major defaulters. Despite the positive reception, some speculate that the decision could be influenced by the upcoming elections and the absence of an elected body required to ratify such decisions.

PMC officials outlined that property tax comprises basic house/building tax along with service taxes, collected either half-yearly or annually. Citizens are eligible for a 10% discount if they settle their payments before May 31. In 2023, the PMC extended the deadline for availing discounted rates to July 31, later pushing it to August 2 to encourage more taxpayers to benefit from the incentive. As an additional measure, the civic administration acknowledged diligent taxpayers with special prizes.

Vivek Velankar of Sajag Nagrik Manch welcomed the decision but stressed the need for strict action against tax defaulters. He expressed concern over the administration's introduction of multiple amnesty schemes for defaulters, suggesting that it sends a wrong message.

Data from the PMC revealed a substantial outstanding amount of Rs8,000 crore, encompassing dues related to mobile towers and major defaulters such as industries, commercial complexes, IT parks, and hospitals. The administration has taken steps to augment revenue by initiating the process of levying property tax on the Metro railway authority. This tax is set to be imposed on 18 stations, two depots, and other properties owned by the Maha Metro Rail Corporation. PMC officials estimate an annual revenue generation of around Rs20 crore from taxing Metro properties.

In the dynamic landscape of civic administration, decisions regarding taxation policies not only impact municipal revenue but also play a crucial role in citizens' financial well-being. As discussions continue, stakeholders eagerly await further developments in the PMC's fiscal strategy for the upcoming financial year.