Pune: PMC to Start Levies on New Construction Projects Upon Completion Certificate
Pune, 17th April 2024: Municipal Commissioner Rajendra Bhosale has issued instructions for construction projects to be registered immediately after receiving the completion certificate from the Pune Municipal Corporation’s (PMC) Building Development Department, and for the Taxation and Tax Collection Department to begin levying property tax.
In the past, there has been a delay in levying property tax on construction projects, often taking one to three years after receiving the completion certificate. This delay has resulted in a sudden and significant tax burden on flat or house owners, who then face paying substantial sums all at once. This situation not only burdens homeowners but also contributes to increasing arrears and revenue loss for the PMC.
To address these challenges, Commissioner Bhosale has instructed the Taxation and Tax Collection Department to begin levying taxes immediately upon receiving the completion certificate. This change is intended to prevent the accumulation of arrears and enable citizens to pay taxes more easily.
Currently, the actual inspection process for levying taxes takes time. Commissioner Bhosale has emphasized that taxes will be levied on the person in possession of the flat, with no exemptions, regardless of whether the flats are sold after construction is completed.
Every year, a large number of construction projects receive approval in the city, generating significant revenue for the construction department. However, there have been delays in collecting property taxes, which have often been attributed to builders and the Taxation and Tax Collection Department.
Immediate taxation will place the responsibility on builders to pay house taxes first. After selling the flats, the builders will pass on the tax obligation to the new flat owners. Many times, flat buyers are faced with paying large amounts of overdue tax.
Commissioner Bhosale urged flat buyers to verify whether all taxes have been paid when purchasing a flat. He also called on the PMC administration to request that the Department of Registration & Stamps of the Government of Maharashtra not object to the municipal tax.
