Pune: PCMC Shatters Tax Collection Records; Rakes in Rs 604 Crores in Six Months

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Pimpri, 22nd October 2023: The Taxation and Tax Collection Department of the Pimpri-Chinchwad Municipal Corporation (PCMC) has set new records in tax collection. Over the last two years, the department has made substantial progress in recovering overdue taxes, significantly reducing the outstanding arrears held by taxpayers over the years.

During the financial year 2022-23, a substantial amount of around 350 crores was recovered from old arrears, and within the first six and a half months of the financial year 2023-24, an impressive Rs. 201 crores of old arrears were successfully collected. Most notably, for the first time in the history of the PCMC, the current financial year has witnessed the collection of revenue of Rs. 604 crores.

The city boasts a total of 6,07,000 registered properties, encompassing residential, industrial, non-residential, mixed, and vacant land categories. The Taxation and Tax Collection Department of the Municipal Corporation collects taxes from property owners through a series of efforts.

Various initiatives undertaken by the department include public awareness campaigns, confiscation campaigns, notices to property owners, temporary water connection suspensions, the publication of lists of defaulters in newspapers, the distribution of bills at homes with the assistance of women’s self-help groups, public awareness through rickshaws, hoardings at important intersections, contests of reels, and effective use of social media. Additionally, each property owner receives customized SMS messages specifying their property tax amount and applicable concessions.

The collective efforts, including the ones mentioned, have resulted in the collection of Rs. 604 crores in taxes over the course of six and a half months in 2023-24. A proactive campaign is currently underway to seize the properties of defaulters, prompting them to settle their arrears immediately.

The city had been grappling with a substantial amount of tax arrears that had been accumulating year after year due to a lack of collection efforts. However, this scenario changed when Assistant Commissioner Nilesh Deshmukh took charge of the department. Under the guidance of Commissioner Shekhar Singh and Additional Commissioner Pradeep Jambhale-Patil, a plan for the recovery of arrears was devised.

The outcome of this approach has been an upward trajectory in arrears recovery over the last two years. Notably, an impressive Rs. 555 crores in old arrears have been recovered, primarily from non-residential property owners with substantial arrears, including residential property owners.

Over the span of six and a half months, the Tax Collection and Taxation Department has succeeded in collecting taxes amounting to Rs. 604 crores from 65 per cent of property owners, marking a milestone in the PCMC’s history. Assistant Commissioner Nilesh Deshmukh has expressed determination to make special efforts in the remaining five and a half months to collect taxes and arrears from the remaining 35 per cent of taxpayers.

Recovery of Tax Arrears in the Last Three Years:
– 2021-22: Rs. 269 crores
– 2022-23: Rs. 354 crores
– 2023-24 (in 6.5 months): Rs. 201 crores

Despite the ongoing seizure of defaulters’ properties by the Municipal Corporation, a substantial number of them still carry substantial tax arrears. For this reason, during the financial year 2023-24, the Taxation and Tax Collection Department issued seizure notices to 41,307 individuals and seizure letters to 36,719 property owners, all of whom have tax arrears totalling Rs. 600 crores.

Tax Collection Breakdown by Means:
– Online: Rs. 380 crores 6 lakhs
– Various apps: Rs. 5 crores 24 lakhs
– Cash: Rs. 78 crores 25 lakhs
– Cheque: Rs. 62 crores 1 lakh
– RTGS: Rs. 32 crores 92 lakhs
– EDC: Rs. 6 crores 97 lakhs
– NEFT: Rs. 4 crores 89 lakhs
– DD: Rs. 4 crores 53 lakhs