Pune: Residents of Newly Incorporated Villages Contribute Rs 30.44 Crore in Property Tax Despite Lack of Clarity

Pune, 12th May 2025: Citizens from 32 newly incorporated villages of the Pune Municipal Corporation (PMC) have collectively paid Rs 30.44 crore in property tax during April and May, displaying their trust in the civic body despite the absence of concrete directives from the Maharashtra State Government. This contribution comes even though the state had, six months ago, directed the PMC to prepare a proposal to reduce the property tax burden on these areas, a directive that remains unacted upon.

For the financial year 2025–26, the PMC has generated property tax bills for these villages exclusively in online format. However, due to a lack of specific instructions from the state regarding the billing process, these bills have not yet been officially dispatched to residents. Still, nearly 22,000 property owners have paid their dues proactively, signaling their faith in the PMC’s administrative functioning. The 32 newly included villages account for approximately 4.5 lakh properties, with a collective outstanding tax amount nearing Rs 850 crore.

Though the state has instructed that tax should not be collected from these merged villages until a revised structure is implemented, it has not clarified the legal framework or methodology for the revised assessments. This ambiguity has led many residents to delay payment. Nonetheless, as per PMC regulations, any dues left unpaid are subject to a monthly 2% compound interest, potentially resulting in 24–27% annual interest accumulation. Fearing such heavy penalties, many residents have opted to settle their taxes promptly.

Data shows that nine villages merged into the PMC in 2017 contributed Rs 16.29 crore from April to May 12, 2025, with 11,602 properties making payments. In contrast, the 23 villages added in 2023 accounted for Rs 14.15 crore during the same period, with 8,777 property holders paying their taxes.

While a final decision from the state is awaited, the proactive approach and trust displayed by residents offer a positive indication for civic administration and revenue collection.