Pune Municipal Corporation Okays hike in property tax

By Accommodation Times News Service

The general body of the Pune Municipal Corporation on 11th February has approved a 6% increase in property tax putting an additional burden on the citizens. The PMC is expecting to mop up additional revenue of Rs 40 crore from the increase in tax.  The civic administration had earlier proposed an 8% hike in property tax for 2013-14 and forwarded the proposal to the standing committee. The committee reduced the hike by 2% during its meeting last month. The civic administration said, it is necessary to increase the revenue from taxes and other sources considering the cost escalation in development projects and expenditure on providing civic amenities, especially projects related to water supply and sewage treatment.

The property tax is one of the main sources of revenue for the PMC and the tax department handles the billing and collection of property tax on residential and commercial plots and other types of properties held privately or by the government within the PMC limits. The tax is charged on immovable or tangible real property such as land buildings and permanent improvements. Based on assessments property holders are expected to pay the tax. The PMC assess the residential and commercial property in the city. It also includes basic house/building tax plus service taxes such as street tax and conservancy/scavenging tax.

As per the section 99 of the Bombay Provincial Municipal Corporation (BPMC) Act the civic body finalizes the rates of taxes every year and puts up the proposal before the standing committee. If the committee approves the proposal it becomes part of the municipal commissioner’s annual civic budget and the standing committee budget. The general body approves the new tax rates  before February.

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