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Pune Municipal Corporation's property tax reduction initiative falls short of expectations

Synopsis

The PMC's plea for citizens to declare self-occupancy for a 40 percent property tax reduction has received a meagre response. Around 40,000 responses were received in two months, significantly fewer than the expected 4.5 lakhs. The initiative aimed to ease high taxes for property owners who reside on their premises. PMC urged property owners to submit a PT3 form, the society's no-objection certificate, ID proof, and a tax bill from another property owned by the same taxpayer within PMC's limits. PMC released tax bills on May 15, deviating from April 1, following the state government's 40 percent rebate reintroduction.

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The municipal authority's resounding call for citizens to formalize their self-occupancy status in exchange for a sought-after 40 percent reduction in property tax has encountered an unexpectedly subdued response. Despite the Pune Municipal Corporation (PMC) harbouring high hopes of garnering enthusiastic participation from around 4.5 lakh residents, the outcome has barely touched 40,000 within the last two months. The heart of this self-occupancy declaration initiative was to unburden property owners who inhabit their premises from the weight of steep taxation.



PMC's guidelines require property owners to submit a comprehensive PT3 form, along with a no-objection certificate from the resident society if applicable. Additional requisites encompass a verified identification proof, along with the submission of a property tax invoice for any other property co-owned by the same taxpayer and falling under PMC's jurisdiction.



This year witnessed a deviation from the norm, with the civic body releasing property tax bills on May 15 instead of the customary April 1. This alteration resulted from the need to reissue the bills following the state government's strategic move to reinstate a 40 percent rebate for self-occupied properties. Although initially introduced in 1970, the rebate never solidified into a formal legislative statute throughout successive governmental tenures. Consequently, it was dismantled in 2019 owing to the clouded legality it presented. In subsequent years, PMC initiated the retrieval of the discount amount as arrears from property taxpayers.



This endeavour, however, was swiftly reversed in the face of persistent citizen opposition. Subsequently, the state Cabinet orchestrated the revival of the rebate earlier this year. Nonetheless, residents of self-occupied properties persistently contend that despite their consistent adherence to tax obligations, the civic body continues to demand arrears. 



In contrast, civic authorities assert that they have, indeed, extended an alternative to self-occupying property taxpayers, affording them the option to forgo arrears settlement. However, a senior PMC official, speaking anonymously, revealed that PMC prompted them to submit declarations. Many taxpayers opted for reduced levies, circumventing the procedural formality.



To sum up, the PMC navigates the intricate domain of property taxation with a dual focus: encouraging compliance through self-occupancy declarations and fostering transparency in the tax assessment process. PMC's endeavours reflect its commitment to optimizing tax structures while ensuring fairness and convenience for property owners, ultimately contributing to a more efficient urban governance framework.



 

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