Pune Struggles to Meet Rs 24 billion Property Tax Target for FY25

PMC has generated approximately Rs 16 billion from property tax in the first two quarters of the current financial year. A PMC official stated that the civic administration must reach a target of Rs 24 billion by March 2025. However, achieving this goal seems challenging due to issues such as restrictions on tax recovery in 34 merged areas.

Property tax has been paid by owners of around 9.16 lakh properties, but nearly 5.05 lakh owners have yet to make their payments. Of the total amount collected, Rs 9.90 billion has been collected online, and around Rs 6.10 billion through offline methods, including cheques and cash.

Citizens in merged areas have opposed the property tax hike, arguing that the civic administration has not been providing essential services such as quality roads, water, and sewage treatment. A PMC official revealed that Rs 12.45 billion in tax remains unpaid from the 34 merged areas.

The civic administration had initiated a drive to seal properties of defaulters, but it was halted after local leaders and residents raised concerns about the high charges in March 2024, prior to the Lok Sabha elections. Shrirang Chavan, a resident of one of the merged villages, expressed that the property tax should not exceed what is charged by the grampanchayat and criticized the authorities for not delivering on promises made to citizens in merged areas.

In 2023-24, PMC collected around Rs 24 billion from building permissions and approximately Rs 22.80 billion from property tax.

Madhav Jagtap, head of PMC's property tax department, mentioned that the civic administration had implemented several measures to recover property tax, including a special drive for tax collection and actions such as property confiscation and auctions.

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