Pune's civic body's property tax liabilities surge to Rs 8,500 crore

Despite the implementation of various initiatives by the administration to recover outstanding dues, the cumulative property tax liability owed to the municipal body has surged to an alarming Rs 8,500 crore. In the current fiscal year, a significant 41% of property owners failed to meet the payment deadline of August 2. Those who adhered to this cut off were entitled to enjoy attractive discounts and additional benefits. Ajit Deshmukh, the eminent head of the property tax department at the Pune Municipal Corporation (PMC), commented that the civic administration has been proactive in employing strategies such as sealing the properties of defaulters and initiating property auctions to effectively retrieve the due amounts.

However, out of the extensive pool of approximately 12 lakh property owners obligated to settle their property taxes within the city limits, an astonishing 5 lakh have yet to fulfil their obligations this year. A senior PMC official highlighted that the defaulters encompass both modest and substantial tax evaders, with a noticeable concentration of non-compliance from commercial enterprises. Civic activists believe that the most viable solution entails adopting uncompromising action against defaulters. Vivek Velankar of Sajag Nagrik Manch expressed that the repeated introduction of amnesty schemes for tax defaulters by the PMC has conveyed an erroneous impression to society. Multiple individuals who benefited from these schemes have subsequently defaulted on their tax obligations. He suggested that the administration's emphasis should be on robust recovery measures rather than offering concessions to defaulters.

PMC records confirm the sealing of 1,400 properties belonging to tax defaulters during the preceding fiscal year, and this practice has persisted into the current year. Additionally, a sum of Rs 100 crore has been recuperated from property owners who settled their dues post-sealing. For those defaulters who continue to abstain from tax payments even after the sealing process has commenced, the impending course of action involves auctioning off their properties. This step will predominantly impact commercial properties that remain in arrears. Prior to the seizure of property, PMC exhaustively explores multiple avenues, including the issuance of formal notices and temporary property sealings.

The municipal body takes possession of the property and adds its name to the official records if the dues remain unpaid. Subsequently, the property is subjected to online auctions through a streamlined bidding mechanism. PMC's property tax department contributes significantly to its revenue, generating an annual range of Rs 1,800 to Rs 2,000 crore. With financial goals in focus, PMC aims to collect Rs 2,318.15 crore from property tax in the current fiscal year. Moreover, an estimated Rs 300 crore is anticipated to be generated from the water tax component collected from residential properties as part of property tax. Thus, the projected overall revenue from property tax is envisaged to stand at a commendable Rs 2,618.15 crore.

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Pune's civic body's property tax liabilities surge to Rs 8,500 crore

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