Pune, 5th February 2024: The Taxation and Tax Collection Department of the Pune Municipal Corporation (PMC) have opted not to increase property taxes for the upcoming financial year (2024-25). This proposal has been presented by the administration to the standing committee, and a decision on it is expected to be reached in the next committee meeting.
The budget preparation for the upcoming financial year has begun with inputs from the Municipal Commissioner and is in its final stages. The Municipal Commissioner has until February 20 to propose a tax hike if deemed necessary. However, this year, the administration has suggested refraining from a tax increase. Consequently, the people of Pune are likely to be spared from a tax hike for the eighth consecutive year.
Property tax stands as a crucial revenue source for the municipality. Despite this, the municipal administration has prioritized arrears recovery over tax hikes. Since there is no General Body comprising corporators currently, the Municipal Corporation’s administration has been assigned to the Commissioner as an administrator. Given the strategic nature of deciding on tax increases, the decision has been made to refrain from increasing taxes at this point.
The corporation had previously raised property taxes by Rs 10 and Rs 16 in 2010-11 and 2016-17, respectively. An 11 percent increase in property tax was proposed annually thereafter, but each proposal was rejected by the Standing Committee. Following the rejection of the tax hike proposal in 2018, the Abhay Yojana was implemented to recover arrears.
In the meantime, the Municipal Corporation had initially withdrawn a 40 percent tax rebate for property owners, causing a significant impact in the city. However, after strong opposition, the state cabinet decided to maintain the concession, and the process has been implemented. The decision not to increase taxes in the new financial year provides further relief to property owners by the Municipal Corporation.