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AI-Driven initiative helps Pune Municipal Corporation add 11,000 properties to tax system

The Pune Municipal Corporation (PMC) has successfully incorporated over 11,000 previously non-tax paying properties into its tax system using artificial intelligence (AI) tools, leading to a revenue increase of approximately Rs 31 crore. The civic administration utilized a combination of data analytics, AI, machine learning tools, and satellite imaging to assess property taxes during the 2022-23 fiscal year.

While talking to the press, Ajit Deshmukh, head of PMC's property tax department, stated that the innovative technology helped identify and classify commercial and residential properties. The AI-driven approach analysed multiple data sets, including property tax data, Geographical Information System (GIS) mapping data, and Google data on properties. The software programs developed for this purpose simulated human intelligence to cross-check virtual information and ground reality, ensuring accurate property assessment.

Rahul Jagtap, head of PMC's information technology department, explained that discrepancies in the data sets and the ground survey were cross verified using AI tools. For instance, if a property was listed as residential in the PMC's property tax department records but was identified as a commercial establishment in the data, the AI tools would flag the discrepancy. A team of civic officials would then visit the site to verify the information. If confirmed, the property owner would be charged the commercial tax rate, which is higher than the residential rate.

In some cases, the AI-driven analysis of satellite images and property tax data revealed discrepancies in the number of flats in a housing society. If the satellite image showed 100 flats while the property tax data listed only 90, civic officials would visit the site to verify the number of flats and add any unregistered ones to the tax system.

This innovative technology was employed to survey core areas of the city and newly merged areas. The civic administration completed the assessment using an annual ratable value and issued bills accordingly. To ensure comprehensive coverage, the building permissions department was also involved in the process to cross-verify tax imposition on newly purchased properties.

Recognizing the potential impact on taxpayers, the PMC has granted citizens more time to pay discounted taxes in the 2023-24 financial year. The extension will likely have a significant impact on revenue, as nearly 50% to 55% of property owners of the 12 lakh properties pay before May 31. With the new deadline, property owners will have until June 30 to pay their taxes.

In conclusion, the Pune Municipal Corporation's successful use of AI to incorporate previously untaxed properties into the tax system has not only generated substantial additional revenue but also showcased the potential of technology in enhancing administrative processes. As AI-driven solutions continue to prove their effectiveness in streamlining procedures, more civic administrations worldwide may consider adopting similar approaches to optimize their revenue generation and resource allocation efforts.

This story was first published in ET Realty

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