18,000 properties in Pune civic body's merged areas remain untaxed
Real Estate

18,000 properties in Pune civic body's merged areas remain untaxed

Around 18,000 properties in the recently merged areas of the Pune Municipal Corporation (PMC) remain outside the tax system, resulting in a financial loss of approximately ?800 million for the civic body. A senior PMC official stated that 45 staff members had been identified for failing to perform their duties, and the civic body intended to take action against them, imposing a fine equivalent to one month’s salary for dereliction of duty.

Madhav Jagtap, head of PMC's property tax department, noted that the officials responsible for incorporating these properties into the tax system had received show-cause notices, and further action would be taken if they were found culpable. He added that the PMC had introduced a new system to ensure regular transfers of tax assessment staff, aimed at improving the tax assessment process, with the ward offices and the tax department head being kept informed to expedite the process.

Data showed that prior to the merger of 11 areas in 2017, PMC had around 850,000 properties under its jurisdiction. After the merger, this number rose to one million, and it further increased to 1.25 million in 2021 following the inclusion of 23 villages. PMC levies multiple charges under property tax, including municipal, general, water, cleaning, fire, tree conservation, and road taxes, along with education and other facility taxes.

Activists argued that action against senior officials was essential, with Vijay Kumbhar from Surajya Sangharsha Samiti claiming that some officials, in collusion with local influencers, ensured properties were not assessed, resulting in revenue loss for the civic body.

A PMC official highlighted that the total property tax owed by the 34 merged areas amounted to ?1,245 crore. Although the civic administration had initiated a campaign to seal properties of tax defaulters, this drive was halted following complaints from local leaders and residents about high tax rates in PMC areas. Property owners from the merged areas opposed the high tax rates, pointing to inadequate infrastructure as a reason for their objections.

According to PMC officials, tax rates are determined by the Annual Rateable Value (ARV), which reflects the annual rent at which the property could reasonably be let. Factors such as carpet area, property type, and ready reckoner rates are used to calculate property tax. All land or property owners within PMC limits are required to pay property tax, including owners of open land, and these factors also influence the rates applied to hostels and rental residential facilities.

Around 18,000 properties in the recently merged areas of the Pune Municipal Corporation (PMC) remain outside the tax system, resulting in a financial loss of approximately ?800 million for the civic body. A senior PMC official stated that 45 staff members had been identified for failing to perform their duties, and the civic body intended to take action against them, imposing a fine equivalent to one month’s salary for dereliction of duty. Madhav Jagtap, head of PMC's property tax department, noted that the officials responsible for incorporating these properties into the tax system had received show-cause notices, and further action would be taken if they were found culpable. He added that the PMC had introduced a new system to ensure regular transfers of tax assessment staff, aimed at improving the tax assessment process, with the ward offices and the tax department head being kept informed to expedite the process. Data showed that prior to the merger of 11 areas in 2017, PMC had around 850,000 properties under its jurisdiction. After the merger, this number rose to one million, and it further increased to 1.25 million in 2021 following the inclusion of 23 villages. PMC levies multiple charges under property tax, including municipal, general, water, cleaning, fire, tree conservation, and road taxes, along with education and other facility taxes. Activists argued that action against senior officials was essential, with Vijay Kumbhar from Surajya Sangharsha Samiti claiming that some officials, in collusion with local influencers, ensured properties were not assessed, resulting in revenue loss for the civic body. A PMC official highlighted that the total property tax owed by the 34 merged areas amounted to ?1,245 crore. Although the civic administration had initiated a campaign to seal properties of tax defaulters, this drive was halted following complaints from local leaders and residents about high tax rates in PMC areas. Property owners from the merged areas opposed the high tax rates, pointing to inadequate infrastructure as a reason for their objections. According to PMC officials, tax rates are determined by the Annual Rateable Value (ARV), which reflects the annual rent at which the property could reasonably be let. Factors such as carpet area, property type, and ready reckoner rates are used to calculate property tax. All land or property owners within PMC limits are required to pay property tax, including owners of open land, and these factors also influence the rates applied to hostels and rental residential facilities.

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