PUNE: The Pune Municipal Corporation (PMC) has proposed a 10% property tax increase aimed at enhancing revenue. The standing committee is set to discuss this proposal in a meeting on Monday; currently, it comprises only civic officials due to the absence of a new general body of elected corporators.
Citizens’ groups and activists are opposing this move, advocating for the administration to prioritize the recovery of dues from defaulters instead. “There are numerous large tax defaulters. Revenue generation is achievable if their dues are collected,” stated Prashant Badhe from Aple Pune, Apala Parisar, a citizens’ group.
Vivek Velankar of Sajag Nagrik Manch added that diligent taxpayers should not bear the burden of increased taxes. “The civic body should incentivize property owners who pay their taxes, rather than impose higher rates on them.”
According to PMC data, approximately Rs 7,000 crore is owed by mobile towers, due to double taxes, disputed tax claims, and tax on government properties, among others. The civic administration has set a target to generate Rs 2,800 crore in revenues for the financial year 2025-26, having already collected around Rs 2,200 crore to date.
Civic officials reported ongoing recovery efforts. Additionally, they recovered about Rs 713 crore from tax defaulters within two months under an amnesty scheme that concluded on January 15 but has been extended for another month. “The monthly penalty of 2% compound interest exceeded the original tax amount, prompting the introduction of the amnesty scheme,” a civic official noted.
Nearly 14.5 lakh properties are subject to tax within the corporation’s limits, with commercial properties facing higher rates than residential ones. Following the abolition of Octroi and local body tax, the civic administration has limited options for revenue generation, primarily relying on property tax.
In the 2022-23 fiscal year, PMC awarded Rs 1 crore to diligent taxpayers through a lottery, but this initiative was discontinued, with residents expressing a desire for its revival.
