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Around 18,000 properties in Pune Municipal Corporation's (PMC) newly merged areas remain outside the property tax system, resulting in a loss of INR 80 crore. The PMC has initiated disciplinary action against 45 officials for negligence. Despite merging 34 areas since 2017, many properties have yet to be taxed, causing dissatisfaction among property owners over high tax rates and inadequate infrastructure. PMC introduced reforms, including regular staff transfers, to improve tax collection. Activists allege collusion between officials and locals to avoid assessments. The PMC faces pressure to resolve loopholes and improve accountability in tax collection.
Around 18,000 properties in Pune Municipal Corporation's (PMC) newly merged areas remain outside the property tax system, resulting in a loss of about INR 80 crore for the civic body. A senior Pune Municipal Corporation (PMC) official disclosed that 45 staff members have been identified for neglecting their responsibilities. These employees will face consequences for their negligence, including a fine equal to one month's salary. Madhav Jagtap, the head of PMC's property tax department, added that show-cause notices have been issued to the concerned officials, and if they are found guilty, they will be subject to further disciplinary measures. Advertisement
The PMC has introduced a new system that ensures regular transfers of tax assessment staff, aiming to improve the overall efficiency of tax assessments. Jagtap emphasised the importance of coordination between ward offices and the tax department to accelerate the process. Before the merger of 11 areas into PMC in 2017, the civic body's jurisdiction included about 8.5 lakh properties. After the merger, the number increased to 10 lakh properties, and by 2021, following the merger of 23 more villages, it reached 12.5 lakh properties. Despite these additions, several properties in the merged areas still haven't been brought into the tax system.
The Pune Municipal Corporation (PMC) imposes a variety of charges on property taxes, which include municipal tax, general tax, water bills, cleaning tax, fire tax, tree conservation tax, and road tax. Additionally, taxes are collected for services such as education and other civic amenities. However, some local activists have voiced concerns about the situation. Vijay Kumbhar from the citizen group Surajya Sangharsha Samiti claimed that some officials, in collaboration with influential residents, deliberately avoid assessing certain properties, causing substantial revenue losses for the PMC.
A PMC official shared that the total property tax to be collected from the 34 merged areas amounts to INR 1,245 crore. A campaign was launched to seal the properties of tax defaulters, but it was halted after local leaders and residents voiced complaints about the high tax rates in PMC areas. Many property owners in these newly merged areas objected to the high taxes, pointing to the lack of adequate infrastructure as a reason for their dissatisfaction.
PMC officials clarified that tax rates are determined by the Annual Rateable Value (ARV) of properties. ARV refers to the annual rent a property could reasonably be expected to earn. Property taxes are calculated based on factors such as the carpet area, type of property (residential, non-residential, mixed-use, industrial, or open land), and current market rates. Any individual or institution owning or possessing land or buildings within PMC limits is required to pay property tax. This tax applies to all properties and open lands within the city's civic boundaries. Additionally, these factors influence the finalised rates for hostels and residential rental properties.
As the situation continues, there is mounting pressure on the PMC to address the loopholes in its tax collection system and ensure all eligible properties are brought into the tax ambit. With the potential revenue at stake, reforms in tax assessment and collection processes will be crucial for PMC to sustain its civic infrastructure projects. Ensuring accountability and transparency in the system will also be key to addressing citizens' concerns and resolving ongoing disputes over tax rates.
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