Pune: The residents of Pune may soon face a 10% increase in property tax, as the Pune Municipal Corporation (PMC) administration has placed a proposal before the Standing Committee, citing rising expenditure and stagnant revenue.
According to officials, the corporation’s capital expenditure, along with maintenance and repair costs, has been increasing every year. However, PMC’s income has not grown at the same pace. Delays in receiving the state government’s share of GST and stamp duty, reluctance in paying construction-related fees within Pune Metropolitan Region Development Authority (PMRDA) limits, and gaps in revenue collection have further strained the civic body’s finances.
As a result, development works across the city are reportedly being affected. Municipal Commissioner and Administrator Naval Kishore Ram has tabled the proposal to increase the general tax component of property tax by 10%.
The proposal is currently before the Standing Committee for approval. A decision is expected in the committee’s meeting scheduled on Monday, February 2, after the previous meeting was adjourned following the demise of Deputy Chief Minister Ajit Pawar. Even if cleared by the Standing Committee, the proposal must receive approval in the general body meeting before February 20, as per procedure.
The timing of the proposal has drawn attention, as the newly elected ruling party is set to take charge after the mayoral election held on February 9.
Meanwhile, former corporators and opposition leaders have strongly objected to the proposed increase. Former opposition leader Ujjwal Keskar, along with Suhas Kulkarni and Prashant Badhe, have argued that increasing taxes is not the only solution to boost revenue.
They allege that the administration is attempting to cover up its own inefficiencies by burdening citizens. They have demanded that the commissioner withdraw the proposal and instead focus on plugging loopholes in tax collection, simplifying procedures, reducing unnecessary approvals, and strengthening inspections of commercial properties.
According to them, effective reforms in these areas could generate hundreds of crores of rupees in additional revenue without increasing the tax burden on residents. With the February 20 deadline approaching, all eyes are now on the Standing Committee and the general body’s final decision on the proposed tax hike.
