The civic body in Pune, India, has sealed over 400 buildings as citizens fail to pay property tax. The Pune Municipal Corporation (PMC) sent notices to property owners and occupants, but non-payment resulted in the sealing of properties. The PMC aims to recover approximately Rs 8,000 crore from defaulters, including industries, commercial complexes, IT parks, and hospitals. Many defaulters have resorted to legal action, causing delays. Concerns have also been raised about exaggerated tax amounts and alleged bias in targeting defaulters. PMC's unique approach of using musical bands to shame defaulters has shown success. The PMC targets a recovery of Rs 2,318 crore for the next fiscal year.
Challenging citizens on the brink of losing their properties, the civic body had sealed over 400 buildings since May this year due to unpaid property tax. Owners and occupants received notices as reminders, but they persistently neglected their obligations, leading to the sealing of these properties. Ajit Deshmukh, the head of Pune Municipal Corporation's property tax department, confirms that the next steps, including property auctions.
PMC officials estimate a staggering recovery amount of approximately Rs 8,000 crore from defaulters, encompassing large-scale tax evaders such as industries, commercial complexes, IT parks, hospitals, and even mobile towers. A multitude of tax defaulters have resorted to legal action against the recovery notices, hindering the PMC's ability to take decisive measures. Consequently, these legal battles have caused significant delays in the recovery process, exacerbating the challenge.
Furthermore, the civic administration has received multiple complaints alleging the imposition of excessive and inflated tax amounts on single properties. This suggests a need for the administration to address these concerns and write off such exaggerated tax figures, ensuring more accurate and realistic tax recovery statistics.
Civic activists accuse the PMC of disproportionately targeting smaller defaulters while providing tax waivers through various schemes to significant offenders. The perception among errant defaulters is that the PMC may offer tax benefits and penalty discounts, fostering a sense of reluctance to fulfil their tax obligations. Frequent introductions of amnesty schemes have inadvertently conveyed an erroneous message to taxpayers, complicating the situation further.
Last year, the PMC embarked on an unconventional tax recovery campaign by employing musical bands. These bands played loud music in front of properties owned by tax defaulters, aiming to publicly shame them into settling their dues. Accompanied by officials from the property tax department, this unique approach successfully facilitated the on-the-spot collection of payments.
In the financial year 2022–23, PMC managed to collect a substantial amount of Rs 2,000 crore from property tax. Looking ahead, the civic administration has set an ambitious target of Rs 2,318 crore for the fiscal year 2023–24, demonstrating their commitment to enhancing tax recovery efforts.
In summary, persistent property tax defaulters face the imminent risk of property loss as the civic body seals buildings. The PMC strives to recover a significant sum from defaulters who have resorted to legal action, causing delays. Concerns regarding inflated tax amounts and allegations of bias in targeting defaulters have emerged. The PMC's innovative use of musical bands has yielded positive results in shaming defaulters into payment. With ambitious targets for the upcoming fiscal year, the PMC remains determined to strengthen tax recovery initiatives.
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