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PMC proposes 11% hike in property tax, political pressure may cause commissioner to stay
The municipal commissioner, who is also serving as an administrator will take a call on this proposal
The property tax department of Pune Municipal Corporation (PMC) has proposed to hike the tax by 11 % for the year 2023-24 with a proposal being submitted before the standing committee for its approval.
The municipal commissioner, who is also serving as an administrator will take a call on this proposal as he heads the standing committee in absence of other members, whose term as corporators expired in March 2022.
A PMC officer, requesting anonymity said, “The PMC administration has proposed a 11% hike; however, final approval will come from PMC commissioner Vikram Kumar. There is pressure from political leadership to not allow a tax hike considering the municipal election.”
The civic body has not increased property tax in the last five years. In 2015-2016, the PMC increased property tax by 10 per cent. Since then, every year the property tax department demanded a hike every year, but the administration rejected their proposal.
The latest proposal to hike tax comes days after PMC put on hold recovery of property tax dues from 2019 on permanent basis. Earlier in August, PMC had issued text messages to more than 60,000 taxpayers seeking payment of dues since 2019 of 40 per cent rebate revoked three years ago. Facing flak from residents, PMC issued a clarification asking citizens not to act on messages till further order.
Every year the municipal commissioner would present reasons for increasing the property tax in the general body meeting, however, this year, the commissioner has a good chance to increase the tax as he will take a call. But with pressure from the political parties, and clear instructions from them, it is unclear if the tax will be increased, said officials.
According to officials, the issue of 40% tax waiver is still pending with the state government. If the municipal commissioner allows a hike, it would invite the anger of citizens. It will also give a good chance to the opposition to corner the ruling party. Hence, it is unlikely that the hike will be approved.