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The Pune Municipal Corporation (PMC) has initiated efforts to recover commercial taxes from businesses operating in slum areas, aiming to generate approximately INR 100 crore in revenue. This move follows the civic body's struggle to recover dues from larger defaulters, including mobile towers that owe INR 3,500 crore. While PMC is focusing on slum-based businesses, civic activists have urged them to prioritise larger defaulters and discourage recurrent tax amnesty schemes. The Slum Rehabilitation Authority (SRA) projects have rehabilitated approximately 11,000 slum dwellers, yet challenges remain due to space constraints and the demand for rehabilitation within the same locations.
The Pune Municipal Corporation (PMC), unable to recover substantial tax dues from major defaulters, has turned its attention towards commercial establishments operating in slums. The civic body has announced plans to levy commercial taxes on these businesses, with revenue estimates reaching INR 100 crore. According to Madhav Jagtap, head of PMC's property tax department, surveys will be conducted in slum areas to assess revenue potential, and tax bills will subsequently be issued. Advertisement
PMC's jurisdiction includes 486 slums, with an additional 71 under the Pimpri Chinchwad Municipal Corporation. Meanwhile, civic activists have pointed out that PMC's priority should be recovering dues from larger defaulters, such as mobile towers, which collectively owe around INR 3,500 crore. They also criticised repeated amnesty schemes, stating these enable habitual defaulters to evade penalties. Vivek Velankar of Sajag Nagrik Manch recommended rewarding regular taxpayers to encourage compliance and improve revenue generation.
Currently, PMC collects property tax, comprising general tax, conservancy tax, sewage tax, and street tax, under Section 128A(1) of the Maharashtra Municipal Act, 1949. In a related effort, the Slum Rehabilitation Authority (SRA), initiated in 2005, has rehabilitated approximately 11,000 slum dwellers in 70 completed projects under its jurisdiction. While 30% of the population has benefitted, space limitations and the preference for rehabilitation in the same areas pose significant challenges.
The success of these initiatives hinges on equitable enforcement, incentivising honest taxpayers, and prioritising long-standing dues, ensuring sustainable revenue and development for the city.
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