Pune Municipality adopts new software to address property tax revenue delays

The Pune Municipal Corporation (PMC) is leveraging specialised software to facilitate real-time data entry, address delays in integrating properties into the tax system, and mitigate revenue losses. Various agencies involved in property permissions and registration, such as the building permissions, property tax, and IGR departments, have been seamlessly integrated into this operational system. This initiative empowers the PMC to promptly include properties in the tax ambit following the issuance of occupancy certificates (OC) or registration.
By automating this process, the PMC aims to streamline property tax assessment and collection, ensuring efficiency and accuracy. A senior corporation official anonymously highlighted the significance of this initiative, emphasising that property tax is levied after the OC is granted. Historically, the manual sharing of information between the building permission and property tax departments has resulted in delays of months, and sometimes years, in adding properties to the tax ambit.
Civic officials disclosed that the administration utilises an 'assessment software' to store property details and tax assessments, while the building permissions department employs another software for building approval. Additionally, auto-DCR software is used to verify documents and process permissions. An application program interface (API) is being utilised to integrate both software systems, enhancing operational efficiency and data accuracy.
Property tax rates are determined based on the annual rateable value (ARV), reflecting the anticipated annual rent of taxable properties. According to municipal corporation data, approximately 11.6 lakh properties within civic limits are eligible for property tax payment. On average, the PMC collects annual revenues ranging from INR 1,800 crore to INR 2,000 crore from property taxes. Furthermore, the state government has empowered the PMC to levy holding taxes on establishments situated on Odisha Industrial Infrastructure Development Corporation (IDCO) land.
This fiscal year, the PMC aims to collect INR 115 crore in holding taxes, signalling its commitment to enhancing revenue collection mechanisms. By embracing technology and streamlining tax collection processes, the PMC seeks to enhance transparency, reduce bureaucratic inefficiencies, and ensure a fair and equitable tax system for property owners and the municipality alike.

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