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The Pune Municipal Corporation (PMC) is examining the use of artificial intelligence to identify unassessed properties and strengthen property tax collection as part of its revenue strategy for the upcoming financial year. Civic officials indicated that roughly 3.5 lakh properties within the city remain outside the municipal tax database, including buildings in newly merged areas and redeveloped structures where records have not been updated. The proposed AI-based assessment system would analyse municipal records, building footprints and geospatial data to detect properties missing from the tax net or inaccurately assessed. The initiative forms part of PMC�s broader effort to improve tax recovery and expand its revenue base, with the civic administration targeting around INR 7,000 crore in property tax collections from defaulters in the current fiscal year.
The Pune Municipal Corporation (PMC) is exploring the use of artificial intelligence (AI) to identify unassessed properties and strengthen property tax collections across the city, civic officials said earlier this week while presenting the municipal budget. The proposed initiative aims to bring properties currently outside the tax net into the municipal database and improve compliance in one of the corporation's key revenue streams.
According to civic data, nearly 3.5 lakh properties within PMC limits are not presently assessed for property tax. These include structures in newly merged areas, redeveloped housing societies where built-up areas have increased, and properties whose records have not been updated in municipal systems. Officials indicated that identifying such properties through conventional surveys has been difficult and time-consuming, prompting the civic administration to evaluate technology-driven approaches.
Municipal commissioner Naval Kishore Ram stated that options such as using artificial intelligence to assess the property tax status of buildings are being examined. The civic body is exploring partnerships with government technology agencies to deploy AI tools capable of analysing property records and identifying discrepancies between registered municipal data and actual structures on the ground.
Under the proposed system, AI-based tools could analyse satellite imagery, building footprints, geographic information system (GIS) data and municipal property records simultaneously. By comparing these datasets, the system would be able to flag buildings that appear larger than the registered built-up area or identify properties missing entirely from the municipal tax database. Civic officials indicated that such analysis could help detect redevelopment projects or newly constructed buildings that have not been updated in municipal records.
The move comes as PMC intensifies efforts to improve property tax recovery and expand its fiscal base. Property tax remains one of the civic body's most important sources of revenue used to finance urban services such as road maintenance, drainage systems, waste management and other infrastructure. However, collection levels have been lower than expected in the current financial year. Municipal data shows that the corporation had collected around INR 2,147 crore in property taxes by the end of January, compared with a target of INR 3,352.40 crore.
As part of its revenue strategy, PMC is aiming to recover approximately INR 7,000 crore from property tax defaulters in the ongoing fiscal year. Expanding the tax base by identifying unassessed properties is expected to play a significant role in achieving this target.
The proposal to strengthen property tax assessment through technology comes amid wider discussions on property tax policy in the city. Earlier proposals to increase property tax rates by five per cent were withdrawn following objections from elected representatives. In addition, civic authorities are considering proposals related to tax exemptions for smaller residential units, which could have fiscal implications for the municipal budget.
Officials indicated that decisions regarding tax rate revisions and potential exemptions will be taken after deliberations by the standing committee. Meanwhile, the civic administration is focusing on improving compliance and identification of taxable properties through technological solutions that could provide a more accurate and updated property database for the city.
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