E-Paper
PMC to appoint Gokhale Institute for study on value-based property tax
PUNE In a bid to reduce the discontent over difference in property tax on old versus new property, the Pune Municipal Corporation (PMC) is weighing the option to levy property tax in accordance with the value of property
PUNE In a bid to reduce the discontent over difference in property tax on old versus new property, the Pune Municipal Corporation (PMC) is weighing the option to levy property tax in accordance with the value of property. The corporation is planning to appoint the Gokhale Institute of Politics and Economics to conduct a study for the same.
The proposal has been put forward by former municipal commissioner, Vikram Kumar, as an administrator. The PMC will pay the Gokhale Institute Rs22.57 lakh to carry out this study in the next four months and prepare a detailed report with all aspects of making the shift.
Presently, property tax is levied as per the ready reckoner rate of the year of registration of the concerned property due to which many old properties in the city are paying less property tax as compared to new properties. The property tax levied on old properties is disproportionate to their size whereas newly-registered properties are being charged huge amounts. In some areas of the city, the property tax for a 2 BHK (bedroom-hall-kitchen) is more than Rs35,000 per annum. Owing to the disquiet among citizens over this difference in property tax, the civic administration is mulling levying property tax in accordance with the value of the property.
Additional municipal commissioner Vilas Kanade, who was formerly the head of the property tax department, said, “It is true that there is a gap between old and new properties. It is also true that both kinds of taxpayers are using the same facilities including roads, water, drainage and gardens. Then why so much difference?”
Another view however is that the amenities were developed out of the tax money previously paid by owners of old properties. Back then, land acquisition and construction costs were also low. A PMC official on condition of anonymity said that the Gokhale Institute will conduct a detailed study for preparing a tax structure based on capital costs and the corporation will take a call on the same later.
