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PMC considers high property tax for bldgs with more amenities, citizens & politicians oppose
Amid the debate over the revocation of 40% rebate on property tax, the Pune Municipal Corporation (PMC) has started preparations for the imposition of additional tax on a pilot basis on flats and bungalows having more amenities as compared to other premises in the same locality
Amid the debate over the revocation of 40% rebate on property tax, the Pune Municipal Corporation (PMC) has started preparations for the imposition of additional tax on a pilot basis on flats and bungalows having more amenities as compared to other premises in the same locality. However, top civic officials have clarified that this is being done only as part of a pilot study.
Municipal commissioner Vikram Kumar on Monday indicated that residents of properties with additional amenities will have to pay additional property tax in a specific area under a ward to be identified by the civic body. If the implementation on a pilot basis is successful, this additional tax will be applicable to other places as well. However, citizens, activists and political leaders have opposed the move.
Recently, the PMC had roped in the Gokhale Institute of Politics and Economics (GIPE) to study the imposition of capital tax based on the value of the property instead of its age and the ready reckoner rates in the area it is located. The PMC had directed the Gokhale Institute to study 100 properties on Prabhat road and the institute had duly submitted the report to the PMC. Upon receiving the report, the PMC found that by applying the new formula suggested by the GIPE, the civic body would be able to collect more tax. Even as per the new policy, citizens having more amenities such as swimming tanks, gymnasiums, gardens etc. would have to pay more tax.
Kumar said, “The Gokhale Institute had submitted the report to the PMC. We have now decided to carry out the study on a larger scale by implementing this formula in one regional ward with around 80,000 properties. We are not applying the tax immediately but just carrying out the study for the same. The PMC is hiring employees on contract to carry out physical inspection of the 80,000 properties.”
While Harshad Abhyankar, director, Save Pune Traffic movement, said, “As the PMC has failed to develop amenity spaces, citizens or developers are developing them at their own cost. The PMC’s latest decision is wrong. If the PMC is planning to apply this rule, it should be based on public amenities such as roads, footpaths, gardens, buses and less pollution. If the PMC develops these facilities in any locality, they can charge more for them and if not, they should reduce the tax.”
The PMC has over eight lakh properties from which it collects property tax. The civic body had collected Rs939.89 crore in property tax till May 31.
The Aam Adami Party (AAP) state convenor Vijay Kumbhar said, “PMC’s premise for this policy is wrong. Ideally, this logic should be for public amenities but PMC is planning to impose more tax on private amenities created by citizens or developers. It’s a wrong decision and the PMC should rectify it.”
According to Nationalist Congress Party (NCP) spokesman Ankush Kakade, if the PMC charges more for having more amenities, developers will not introduce these amenities in their own housing projects in future. “The PMC should rethink the policy instead of charging more,” Kakade said.
Sameer Goyal, a Punekar, said, “If the PMC had developed good gardens and encroachment-free footpaths, citizens would not pay more to purchase properties in good housing societies. The maintenance in these societies is high. If the PMC would create these facilities in localities, the citizens would be happy to pay more tax to the civic body instead of paying more maintenance for these amenities.”
Box
Cabinet minister Chandrakant Patil is likely to meet deputy chief minister Devendra Fadnavis and officials from the urban development department (UDD) in Mumbai on September 14 in order to resolve the recovery of property tax dues from 2019 on a permanent basis. Earlier last week, Patil had held a meeting with Kumar and discussed the property tax and pothole issues in Pune city.
