Pune Sees Surge in Tax Discounts for Rainwater Harvesting

01 Aug 2024

In Pune, the number of property owners receiving tax discounts for implementing rainwater harvesting has surged nearly tenfold over the past decade, although overall adoption remains limited. In the fiscal year 2012-2013, only 306 properties availed tax benefits specifically for rainwater harvesting. This number jumped to 3,716 by 2022-2023, reflecting a growing awareness and uptake of the practice.

The municipal administration has offered a tax rebate of up to 10% for the installation of rainwater harvesting systems, as well as solar and vermicomposting units. However, the response to solar and vermicomposting units has been significantly higher compared to rainwater harvesting.

In 2012-2013, a total of 23,173 properties received tax discounts for all three categories—rainwater harvesting, solar, and vermicomposting. This number rose to 1,11,213 by 2022-2023, indicating a substantial increase in overall tax benefits claimed.

Despite these incentives, the adoption of rainwater harvesting systems remains lower than anticipated. In response to water scarcity issues highlighted in recent state assembly discussions, Deputy Chief Minister Devendra Fadnavis emphasized the need for mandatory rainwater harvesting systems in new constructions and called for a review of the current policy.

The Pune Municipal Corporation (PMC) has actively promoted rainwater harvesting since 2006, making it a requirement for all new building permissions. The PMC has also installed these systems in various public properties, including its headquarters, civic schools, ward offices, and hospitals.

With approximately 12.5 lakh properties in PMC areas liable for property tax, there is potential for wider adoption of rainwater harvesting. Around 2 lakh private properties have the capacity to install such systems, a number that could increase to around 3 lakh with the inclusion of newly merged areas.

PMC has also issued guidelines for commercial establishments, food joints, and educational institutions, urging them to focus on water recycling and reduce wastage. Nandkishor Jagtap, head of PMC's water supply department, stressed the importance of rainwater harvesting and proper maintenance of water tanks and taps to further conserve water resources.

Overall, while the increase in tax discounts is a positive step, broader adoption of rainwater harvesting remains crucial for addressing Pune's water scarcity challenges. 

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