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The Pune Municipal Corporation (PMC) has placed before its standing committee a proposal to raise property tax by 10 per cent for the upcoming financial year, prompting widespread criticism from citizens' groups and activists. The proposal, intended to bolster civic revenue amid rising expenditure and slow growth in income, will be considered by the committee in the coming days, with final approval required from the full civic body before mid-February. Critics argue that increasing tax for compliant property owners is unjust when substantial dues, reportedly around INR 7,000 crore, remain uncollected from major defaulters, including commercial entities, government departments and disputed claims. Opponents have urged the administration to prioritise recovery of outstanding taxes and to explore alternative revenue avenues rather than imposing a higher tax burden on ordinary taxpayers. The issue has become contentious in the run-up to key municipal budget decisions.
The Pune Municipal Corporation (PMC) administration has proposed a 10 per cent increase in property tax for the next financial year, setting the stage for a contentious debate ahead of the civic body's budget deliberations. The proposal has been tabled before the PMC's standing committee, which is currently composed solely of civic officials owing to delays in the formation of the new general body of elected corporators. A final decision requires approval by the full civic body before mid-February. Advertisement
PMC officials have said that rising maintenance, repair and capital expenditure, combined with stagnant revenue growth, have created financial strain. Delayed transfers of the state government's share of Goods and Services Tax (GST) and stamp duty receipts, as well as gaps in revenue collection mechanisms, are said to have exacerbated the situation. In this context, the administration believes a structured increase in property tax rates is necessary to meet the city's fiscal needs.
The proposed 10 per cent hike has sparked strong dissent from citizens' organisations and activists. Groups such as Aple Pune and Sajag Nagrik Manch have criticised the move, arguing that the civic administration should intensify efforts to recover substantial outstanding tax dues from large defaulters instead of imposing an additional burden on compliant property owners. According to critics, PMC is owed nearly INR 7,000 crore in unpaid taxes, including contributions from mobile tower operators, disputed claims and properties belonging to government and semi-government bodies. They have maintained that diligent taxpayers should be recognised rather than penalised.
During discussions, activist representatives highlighted the success of the recent amnesty scheme, which generated around INR 713 crore from defaulters over a two-month period, and suggested that further such initiatives could help bridge revenue gaps without raising tax rates. They have also called for more efficient assessment and collection processes, along with scrutiny of commercial properties that may have been underassessed.
The proposal's timing has given it added political resonance, coming as the civic body prepares to finalise its budget and facing a transitional period in leadership. The debate over whether to increase property tax or pursue alternative fiscal reforms is expected to continue as the standing committee and elected representatives prepare for crucial decisions on Pune's municipal finances in the weeks ahead.
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