Standing committee rejects proposed 12% property tax hike; OKs increase in water taxUpdated: Jan 30, 2020 19:16 IST
Residents can now heave a sigh of relief as the standing committee of the Pune Municipal Corporation (PMC) has on Thursday rejected the civic chief’s proposal of 12 per cent hike in property tax. The committee has, however, allowed the 15 per cent hike in water tax.
PMC commissioner Shekhar Gaikwad on Monday had presented a Rs 6,229-crore draft budget for the year 2020-21, with the proposal of a 12 per cent hike in property tax and 15 per cent hike in water tax.
Hemant Rasane, standing committee chairman, said, “Instead of proposing a hike in property tax the municipal administration should concentrate on recovering dues. The water tax is nominal as compared to property tax, so the general body has decided to give a nod to the 15 per cent hike.”
“While approving the 24x7 water project for the city, the general body had promised to allow 15 per cent hike in water tax every year as PMC would be able to recover money equal to its expenditure on distributing water,” Rasane said.
Gaikwad while presenting the draft budget had said that administration expects an additional income of Rs 150 crore from the proposed property tax hike which will also be applicable for the cellphone tower companies, IT and ITES companies. The PMC administration is expecting Rs 1,970 crore revenue from property tax and Rs 749 crore from building permission department, he said.