PUNE: The state government and Pune Municipal Corporation (PMC) officials are set to meet on Wednesday to finalize the future approach regarding property tax implementation at discounted rates in 32 merged areas.
Residents from these merged areas are requesting that the state impose property taxes at reduced rates, arguing that the PMC has levied heavy taxes following the integration of these regions into municipal limits.
Last year, the state government directed the PMC to levy “twice the property tax rate charged by the grampanchayat before the merger,” in response to citizen demands. However, PMC officials stated they could not comply with this directive due to a lack of legal framework for such taxation and sought further clarification from the state.
During a recent meeting involving civic officials, residents of the merged areas, and Deputy Chief Minister Ajit Pawar, it was decided to convene another meeting with the state next week to finalize implementation guidelines. Ahead of the state assembly elections in November last year, the government ordered the PMC to suspend property tax collection from these merged regions.
Residents are expressing their frustration over the PMC’s plans to collect property tax without a discount, highlighting the lack of basic amenities in the merged areas. Amar Chindhe from Ambegaon stated, “We are not receiving adequate civic facilities but are expected to pay high property taxes. This is unjust. The authorities must ensure a reduction in the property tax rate.”
Shreerang Chavan, a resident of Dhayari, added, “Years have passed since the merger, but we still struggle to access water, roads, and drainage systems. The promises for amenities have repeatedly gone unfulfilled. Our demand for a reduction in the property tax burden should be prioritized.”
Approximately 2.75 lakh properties exist in the merged areas, with the civic administration aiming to collect around Rs 150 crore by imposing standard rates. In contrast, the remaining civic areas contain around 12 lakh properties, generating roughly Rs 2,100 crore in taxes.
Property owners in the merged regions report an average property tax charge of Rs 2 per square foot annually by the grampanchayat, while the PMC now charges Rs 2 per month. Consequently, the effective property tax rate has increased to about Rs 24 per year post-merger. Eleven areas were merged in 2017, followed by 23 in 2021, while two villages, including Uruli-Phursungi, were demerged in 2024.
A senior PMC official, speaking anonymously, mentioned, “The civic administration is seeking clarification on implementing these directives. We have also paused tax recovery following the state’s orders to provide relief to property owners.”
