PMC general body rejects proposed 5% property tax hike

Leader of the House Ganesh Bidkar said the ruling party did not want to impose any new tax burden on Pune residents

The general body of the Pune Municipal Corporation (PMC) on Wednesday unanimously rejected a proposal to increase property tax by five per cent, which had been cleared by municipal commissioner Naval Kishore Ram. The proposal was turned down by corporators across party lines, citing concerns over placing an additional financial burden on citizens.

The proposal originated from the property tax department, which had initially sought a 10 per cent hike to shore up civic finances. (HT)

Leader of the House Ganesh Bidkar said the ruling party did not want to impose any new tax burden on Pune residents. “The citizens of Pune have given a landslide victory to the Bharatiya Janata Party. We do not want to burden them further and therefore rejected the proposal. The existing property tax slabs will continue. For the last 11 years, there has been no increase in property tax,” he said.

The proposal originated from the property tax department, which had initially sought a 10 per cent hike to shore up civic finances. The commissioner later approved a reduced hike of five per cent and placed it before the general body for final approval.

Bidkar said instead of raising taxes, the civic administration should focus on improving revenue collection. “Rather than burdening citizens, the administration must strengthen existing sources of income and plug leakages in revenue,” he said.

Raising concerns over inefficiencies at the ward level, BJP leader Varsha Tapkir said many willing taxpayers were being turned away. “Several citizens visit ward offices to get their properties assessed for tax, but the administration is not processing their proposals. There are complaints that some staff are demanding money. Instead of increasing taxes, the PMC should focus on bringing more properties under the tax net,” she said.

Congress leader Chandu Kadam echoed similar concerns, alleging delays in taxing newly constructed buildings. “Many new buildings are applying for tax assessment and no-objection certificates, but the administration is delaying the process. Revenue-generating work should not be handled so casually,” he said.

A citizens’ group had also urged the PMC to reject the proposed five per cent hike in property tax, arguing that the civic body’s revenue from the levy has already increased sharply over the past decade.

Earlier this week, Vivek Velankar, president of the Sajag Nagrik Manch, said the sole justification cited by the administration for the hike is that property tax rates have not revised since 2015–16. “However, the absence of a rate hike does not mean civic revenues have remained stagnant,” said Velankar.

According to the figures cited by the group, property tax revenue stood at around ₹930 crore in 2015–16 and has risen to approximately ₹2,130 crore in 2024–25—an increase of nearly 135 per cent over nine years. Velankar claimed that property tax collections could cross ₹3,000 crore this year, amounting to a 235 per cent rise compared to 2015–16.

The five per cent hike would have added only about ₹200 crore to the PMC’s revenue, said Velankar. “Instead of increasing tax rates, if even five per cent of the properties that are currently outside the tax net are brought under assessment next year, property tax revenue could increase by at least 10 per cent,” Velankar said.

Velankar also pointed to substantial pending dues owed to the PMC by various government agencies. These include ₹1,075 crore from the state government towards a one per cent surcharge on property registrations, ₹1,950 crore in pending goods and services tax compensation for merged villages, ₹355 crore in unpaid property tax by state and central government offices, and ₹340 crore in outstanding water charges from government establishments.

“If the administration can recover even a part of these arrears, the PMC would be in a position not just to avoid a tax hike, but to consider significant relief for taxpayers,” Velankar said, claiming that a property tax rebate of up to 50 per cent could be feasible.

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Special general body meeting likely on property tax in merged areas

Leader of the House Ganesh Bidkar said a special general body meeting would be convened to discuss property tax issues in recently merged villages. Residents of these areas have opposed higher taxes after their inclusion in the PMC limits. Earlier governed by gram panchayats, property tax in these localities reportedly increased five to six times after the merger. Although the state government had indicated that taxes would be increased gradually in such areas, no formal resolution or circular has been issued so far.