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Pune Municipal Corporation announces tax benefit for recently merged areas

PNT Reporter | Last Updated : 19th May, 2023
Synopsis

The Pune Municipal Corporation (PMC) has extended the 40 percent tax benefit for self-occupied properties to the recently merged areas, easing concerns over high property tax rates. However, residents are confused about their bill status. Merged villages lack basic infrastructure and face higher taxes while receiving fewer amenities compared to central areas. The PMC has become the largest municipal corporation in Maharashtra after adding 23 villages. The Uruli-Phursungi areas will undergo demerger and have a separate governing body.

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As per the statement made by PMC officials, the 40 percent tax benefit applicable to self-occupied properties will also be applicable to the 21 recently merged areas. The decision has brought some solace to the residents, who expressed discontent with the elevated property tax rates as a result of their inclusion in the municipal boundaries.



According to PMC officials, invoices have already been generated in certain regions, and the civic authorities will assess them. There was a state of perplexity among residents residing in these regions regarding the status of the bills. 



Popatrao Khedekar from Narhe village stated that the local authority needs to ensure that the taxes imposed on us are in line with those of the village council. The imposition of high taxes is unwarranted since PMC fails to provide satisfactory services. He also suggests that the ongoing confusion can be resolved if the PMC establishes better communication with us, a step that has not been taken yet.



Rumours circulated that the merged regions would receive partial tax invoices rather than the entire amount. Vyankoji Khopade from Gujar Nimbalkarwadi stated that we have not received the bills and there is a lack of information from the property tax department regarding the matter. As of now, there has been no communication regarding the specifics of the 40 percent tax reduction.



According to Ajit Deshmukh, the head of PMC's property tax division, the regions that have recently been amalgamated are now included within the boundaries of PMC. Automatically, they will receive a 40 percent reduction through the program. He stated that the process of invoicing has started.



According to the authorities of the PMC, taxes are gradually being implemented in the recently annexed regions. Approximately 80 percent of the overall tax is not imposed in the 23 fused regions.



PMC authorities state that they sanctioned the merger of 34 villages in 2013-14. However, the amalgamation did not occur. The Bombay High Court had been approached by a civic organization known as the Haveli Taluka Nagari Kriti Samiti. In 2017, PMC followed the court's instructions and incorporated 11 villages under its jurisdiction. There was a partial merger of nine villages, while two other villages, Uruli-Phursungi, were fully added.



Following the addition of 23 villages in July 2021, the PMC has emerged as the largest municipal corporation in Maharashtra. The merger will result in an extension of the PMC limits to cover an area of 518.77 square kilometres. The Uruli-Phursungi areas are set to undergo a demerger as per the recent announcement made by the state government. They will be subject to a distinct governing body within the local government.



Residents in merged areas pay higher property taxes but receive fewer amenities compared to those in central parts. Merged villages lack basic infrastructure such as roads, waste management and streetlights. Numerous merged villages have experienced significant real estate growth due to affordable land rates and availability. Around 5 lakh individuals reside in these newly added PMC regions. Besides taxes, these regions are also facing challenges in terms of their water supply.

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