Pune: PMC’s Merged Areas Pay Rs 449 Crore in Taxes Despite State Stay Order

Pune, 27th March 2025: Property owners in the 34 areas recently merged into the Pune Municipal Corporation (PMC) have collectively paid nearly ₹449 crore in property tax for the current financial year, despite a state government order staying tax recovery in these regions.

Several residents from these areas have opposed the property tax, arguing that it is disproportionately high compared to the civic services provided. Their protests led the state government to temporarily halt tax collection.

Ahead of the Maharashtra Assembly elections in November last year, the government directed PMC to stop property tax collection in these merged localities. It also suggested that residents should be charged only twice the amount they previously paid under gram panchayats instead of the full municipal tax. However, there has been no follow-up notification detailing how this directive should be implemented.

“The municipal administration continues to charge property tax as per the existing system. PMC has not offered any discounts to residents of merged areas since there is no official directive outlining the process. The state has stayed tax recovery but has not clarified how to apply a concession,” said a senior PMC official.

This lack of clarity has left residents frustrated, fearing that the state’s announcement was merely a political promise ahead of elections. “The stay on tax recovery was welcomed by property owners, but if the municipal corporation does not act on it, it raises doubts about whether it was a genuine decision or just a pre-election assurance,” said a resident from one of the merged areas.

Meanwhile, civic activists caution that this ongoing uncertainty is leading to financial losses for PMC. They stress the need for both the state government and municipal administration to resolve the issue promptly.

“If the government intends to offer tax concessions, it must legally amend the relevant laws. The process for such amendments should be completed, and an official notification must be issued to clear the confusion,” said Ujwal Keskar of Aaple Pune, a citizen group advocating for better civic governance.

PMC officials maintain that until they receive further instructions from the state, they will continue levying property tax as per existing norms.