The Pune Municipal Corporation (PMC) generated around INR 1,600 crore from property tax in the first half of the financial year, aiming for a target of INR 2,400 crore by March 2025. However, nearly 5.05 lakh property owners have yet to pay, with significant opposition from residents in merged areas due to inadequate facilities. While PMC initiated a drive to seal defaulters' properties, it faced pushback and paused the effort. Despite these hurdles, PMC collected approximately INR 2,400 crore from building permissions and is taking measures like property confiscation to improve tax recovery.
The Pune Municipal Corporation (PMC) has generated approximately INR 1,600 crore from property tax in the first two quarters of the current financial year. According to a PMC official, the civic administration is aiming to reach a target of INR 2,400 crore by March 2025. However, achieving this goal seems challenging for PMC, particularly due to difficulties in recovering tax in 34 merged areas.
Approximately 9.16 lakh property owners have settled their tax payments, while nearly 5.05 lakh owners have yet to do so. Of the total amount collected, INR 990 crore has been received online, and around INR 610 crore has been collected through offline methods, including cheques and cash.
Residents in merged areas have expressed their opposition to the increase in property tax, arguing that the civic administration has failed to provide adequate facilities in these regions. They highlighted the lack of basic amenities such as quality roads, water supply, and sewage treatment. A PMC official noted that the civic body still needs to recover INR 1,245 crore in tax from the 34 merged areas.
The civic administration had initiated a drive to seal the properties of defaulters. However, this was halted after local leaders and residents raised concerns about the hefty charges in March 2024, just before the Lok Sabha elections.
A resident of one of the merged villages expressed concerns about the property tax, emphasizing that the administration should ensure it does not exceed the rates previously charged by the gram panchayat. He also pointed out that despite promises of relief from authorities and elected officials, no action has been taken to address the issue.
In the 2023-24 fiscal year, the Pune Municipal Corporation (PMC) collected approximately INR 2,400 crore from building permissions and around INR 2,280 crore from property tax.
Madhav Jagtap, the head of PMC's property tax department, mentioned that the civic administration had implemented several measures to recover property tax. He noted that PMC had launched a special drive for tax collection and that actions like property confiscation and auctions had been carried out.
The PMC is navigating a complex landscape of tax collection and resident dissatisfaction. As it strives to meet its revenue targets, addressing the concerns of citizens in merged areas will be crucial for fostering cooperation and ensuring sustainable growth in Pune.
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