Pune Municipal Corporation Approves Proposal to Keep Property Tax Unchanged

Pune, 7th February 2025: In a relief to city residents, the Pune Municipal Corporation (PMC) Standing Committee has approved a proposal to not increase property tax for the financial year 2025-26. The decision, in line with the administration’s stance of not taking any major policy decisions, will now be placed before the general body meeting for final approval.

Despite maintaining the current tax structure, PMC aims to boost revenue collection through measures such as recovering pending tax arrears, levying taxes on newly added properties, and auctioning properties of defaulters. The municipal administration, led by Commissioner and Administrator Dr. Rajendra Bhosale, is currently in the process of finalizing the 2025-26 budget, holding review meetings with various departments.

PMC last approved a property tax hike in 2016, increasing rates by 10 percent. Prior to that, taxes were raised by 16 percent in 2010-11 and six percent in 2013-14. While previous municipal commissioners had proposed an 11 percent annual hike, these were repeatedly rejected by the Standing Committee when elected representatives were in charge.

Currently, with the municipality under administrative control, there were speculations that a tax hike could be implemented. However, citing the need for a policy decision, the administration chose to maintain the existing tax rates. Importantly, all existing tax concessions will continue this year as well.

The move is expected to bring financial relief to residents, while PMC focuses on alternative revenue streams to manage its financial obligations.