PMC to keep property tax rates unaltered for upcoming fiscal year

The Pune Municipal Corporation (PMC) is set to maintain current property tax rates in the upcoming fiscal year, preserving relief for owners of approximately 11.3 lakh properties. This decision is deemed a policy choice by PMC administrator Vikram Kumar.
Property tax serves as the PMC's primary revenue stream, generating an annual income of Rs2,000 crore. PMC officials clarify that property tax encompasses basic house/building taxes and service taxes, collected semi-annually or annually. Citizens availing a 10% discount for payments before May 31 experienced an extension until July 31 in 2023, further extended to August 2 to encourage more taxpayers to benefit. The civic administration also introduced special prizes to reward diligent taxpayers.
The move is perceived to be influenced by the forthcoming elections and the absence of an elected body to enforce decisions. Activists welcome the decision but call for a heightened focus on recovering dues from major defaulters. Activist bodies like Sajag Nagrik Manch emphasize the necessity for strict action against tax defaulters, expressing concerns about amnesty schemes sending the wrong message.
PMC data reveals a substantial recovery target of Rs 8,000 crore, encompassing taxes on mobile towers and notable defaulters like industries, commercial complexes, IT parks, and hospitals.
In a bid to augment revenue, the PMC administration initiates the taxation process for Metro properties, including 18 stations, two depots, and other assets owned by the Maha Metro Rail Corporation. Anticipating an annual yield of approximately Rs20 crore from Metro property taxes, officials assert their commitment to diversifying revenue streams.
Despite financial challenges, the PMC's decision to refrain from property tax hikes is driven by a dual consideration of taxpayer relief and strategic revenue enhancement. The extension of payment deadlines and incentives for prompt payment showcase a nuanced approach to tax administration. As the PMC endeavours to recover substantial amounts from diverse sources, including big defaulters, the initiation of property tax on Metro properties reflects a proactive stance to meet revenue targets in the face of evolving municipal fiscal dynamics.

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PMC to keep property tax rates unaltered for upcoming fiscal year

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