Pune: 32 Merged Villages May Get 35-40% Property Tax Relief from PMC

Pune, 4th September 2026: Property owners in Pune’s 32 recently merged villages are likely to get relief from high property tax, with the Pune Municipal Corporation (PMC) considering a 35 to 40 per cent reduction in the tax burden. The civic administration has decided to revise the fixed annual ratable value of properties in these villages, which would bring down the tax payable by residents.

The decision can be taken at the municipal level as the power to determine the annual ratable value rests with the PMC and does not require separate approval from the state government. The administration made a presentation on the proposal at the Revenue Hike Committee meeting on Wednesday. Standing Committee chairman Srinath Bhimale said the proposal would be placed before the Standing Committee shortly.

Residents of the merged villages have long opposed the higher tax, arguing that PMC rates were several times higher than those earlier levied by gram panchayats. Former deputy chief minister Ajit Pawar had maintained that property tax in the merged villages should not exceed twice the rates charged by gram panchayats. Property tax recovery from these areas had been kept on hold pending a final decision.

The 32 villages have around 4.36 lakh properties, with the PMC’s annual tax demand estimated at Rs 675 crore. Of these, 3.28 lakh properties have outstanding dues amounting to Rs 2,501 crore, while the civic body has recovered only Rs 254 crore.

The higher tax followed the PMC’s practice of applying the annual ratable values prevailing in adjoining municipal areas after villages were merged. The same method had been used for villages merged in 1997 and 2013, and was subsequently applied to seven villages merged in 2017 and 23 villages merged in 2021. This resulted in a sharp increase in property tax for residents, while complaints also grew over the lack of adequate civic amenities.

Meanwhile, the Mayor has written to the Tax Collection Department seeking a 30 per cent reduction in the annual ratable value of properties in the merged villages. The letter urged the PMC to implement the reduction immediately and proposed that the ratable value be gradually increased by 20 per cent in stages once basic civic amenities are provided in these areas.