Discontent among residents as PMC charges higher tax for new properties

In many cases, the bills sent by the civic body post-April 1 are charged between Rs30,000 and Rs50,000 for new properties when older ones at the same locations have been charged ₹8,000 to ₹10,000

As the tax for the financial year 2022-23 has been multiple times higher for new properties compared to older ones in Pune Municipal Corporation (PMC) limits, there is growing discontent among the residents who have demanded parity.

Smaller flats built recently are charged three to four times higher tax by PMC compared to bigger and older ones in the same localities, say, residents. (REPRESENTATIVE PHOTO)

Smaller flats built recently are charged three to four times higher tax by PMC compared to bigger and older ones in the same localities, say, residents.

In many cases, the bills sent by the civic body post-April 1 are charged between Rs30,000 and Rs50,000 for new properties when older ones at the same locations have been charged ₹8,000 to ₹10,000.

Hemant Patil, who recently purchased a 2BHK flat in the Sahakar nagar area, said, “I have received a property tax bill of ₹38,000. A friend of mine who owns a lavish bungalow which is 15 years old in the same locality has got the tax bill of ₹9,000.”

“I brought the flat on loan and need to pay EMI of ₹40,000 per month. Our society’s maintenance is more than ₹2,500 per month,” he said.

“The gap between the tax for old and new properties has increased. We should also think from PMC’s perspective too. When we acquired the land a few years before, we constructed roads and executed water projects, the cost was low, but now it has inflated. We apply tax based on ready reckoner rates when properties are registered, but it is also true that new taxpayers are shelling out more,” said Vilas Kanade from PMC’s property tax department.

“There was a proposal to apply tax based on the property’s valuation instead of ready reckoner rates, but it is a policy decision and policymakers need to take a call on it,” he added.

The grumble is more conspicuous among residents of recently merged areas where PMC has served bills demanding almost three to four times higher property taxes from those living on the periphery compared to old parts of the city, which have better roads, 24x7 water supply and many other civic amenities the recently merged villages are deprived of.

Rajendra Sarode, a resident of the Parvati area, said, “I have got a bill of Rs24,600 for 525 square feet 1 BHK flat that I own. For 2 BHK flat owners it is almost double the amount.”

In merged areas, rapid urbanisation with large clusters of residential buildings, poor water availability, absence of cleanliness, sanitation, poor garbage management, bad roads and poor public transport has been a litany of issues that residents face on day-to-day basis.

Savita Dasgupta, a city resident, said, “We were thinking of buying a property in Pune but by considering society maintenance charges and property tax we prefer to stay in a rented flat.”

Civic activist Vivek Velankar said, “There is a huge gap between tax for old properties and new properties. If we are speaking about equal water distribution, then why not one tax for one city? The PMC and state government must think about the equation for tax application.”

Hemant Rasne, Bharatiya Janata Party (BJP) leader and former standing committee chairman, said, “The equation for applying the property tax has been decided by the state government for all the municipal corporations. We ruled in PMC for the last five years but we did not propose a single hike in property tax.”

Nitin Kadam, Nationalist Congress Party (NCP), urban cell head, said, “BJP is claiming that they did not propose any hike but every year ready reckoner rates are increasing and burdening the common man.”

Reason for hike in property tax

*As instructed by the state government to municipal corporations after the court’s decision, the 40 per cent discount for property owners has been cancelled. So, the new property owners’ tax share has increased sharply.

*Initially PMC had executed the discount for five-year-old properties.

Property tax is evaluated or assessed on

*Carpet area of the property

*Type of property- residential, commercial, mixed, industrial, open plot

*As per ready reckoner rates