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PMC to soon announce commercial tax for coaching classes, hostels

PMC is preparing proposal to levy commercial property tax on buildings that run coaching classes, study rooms, and hostels, while initiating action against illegal centres amid rising safety concerns

Published on: Dec 06, 2025 3:12 AM IST
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Pune: The Pune Municipal Corporation (PMC) is preparing a proposal to levy commercial property tax—three times the residential rate—on buildings that run coaching classes, study rooms, and hostels, while simultaneously initiating action against illegal centres amid rising safety concerns.

PMC is preparing proposal to levy commercial property tax on buildings that run coaching classes, study rooms, and hostels, while initiating action against illegal centres amid rising safety concerns. ((PIC FOR REPRESENTATION))
PMC is preparing proposal to levy commercial property tax on buildings that run coaching classes, study rooms, and hostels, while initiating action against illegal centres amid rising safety concerns. ((PIC FOR REPRESENTATION))

At a review meeting held on December 3, chaired by additional municipal commissioner PB Prithviraj, officials from encroachment, taxation, ward offices and security departments assessed violations such as study rooms operating in basements and parking areas, unsafe PG facilities, and street vendor encroachments around student hubs.

The civic body will draft rules for study rooms and PGs, begin a citywide survey to identify unauthorised facilities and start action against illegal study rooms within a week. The tax department will verify commercial use, and a joint meeting with the police is expected in 10-15 days.

Pune has over 140 coaching centres and a rapidly expanding network of study rooms and PG accommodations in areas like Sadashiv Peth, Narayan Peth, Shivajinagar, Deccan, Kothrud, Karve Nagar, Pimple Gurav, Narhe and Hadapsar. Many centres run in cramped, poorly ventilated spaces without fire permissions, causing safety risks, traffic congestion and blocked footpaths.

“Pune welcomes students but cannot allow unregulated facilities to disturb residents,” Prithviraj said, adding that all study rooms and PGs must comply with fire, building and tax norms and that PMC will monitor the crackdown closely.