PUNE: An increase in property tax was unlikely during the civic budget in the next financial year and citizens living across areas under the Pune Municipal Corporation (PMC) may not bear the additional burden.
PMC administrator Vikram Kumar said, “Increase in tax is a policy decision. We are not considering it.”
Civic officials said property tax was PMC’s biggest income source. The administration generated around Rs2,000 crore annually from the levy. The decision to not increase property tax would give relief to owners of around 11.3 lakh properties.
Though activists welcomed the move, they expressed that the civic body should focus on recovery of tax dues from big defaulters.
Incidentally, reasons behind the decision were being seen as elections due next year and absence of an elected body required to ratify decisions.
Civic officials said property tax included basic house/building tax plus service taxes. It gets collected either half-yearly or annually. Citizens receive a discount of 10% if they pay before May 31.
In 2023, an extension to pay the tax at discounted rates by July 31 was given. The PMC extended the deadline to August 2, to ensure more taxpayers availed the benefit. The civic administration also gave special prizes to diligent tax payers.
Vivek Velankar of Sajag Nagrik Manch said, “Strict action against tax defaulters is a must. The administration has introduced a number of amnesty schemes for them, sending out a wrong message.”
PMC data showed the administration had to recover Rs8,000 crore. It included tax on mobiles towers and big tax defaulters – including industries, big commercial complexes, IT parks and hospitals.
Officials said in an effort to increase revenue, the administration has started the process to charge property tax from the Metro railway authority. It will be levied on 18 stations, two depots and other properties owned by Maha Metro Rail Corporation. According to PMC officials, the administration was expected to generate around Rs20 crore per year from taxes on Metro properties.
