Pune civic body to recover property tax dues with Amnesty Scheme
Real Estate

Pune civic body to recover property tax dues with Amnesty Scheme

The city's governing body is considering implementing an amnesty scheme for individuals who have defaulted on property taxes. This initiative would include a reduction in penalties, and property owners in Pune Municipal Corporation (PMC) areas can take advantage of the program through Lok Adalat.

PMC's administrator, Vikram Kumar, expressed the civic administration's desire to incentivise tax payment among defaulters. The goal is to encourage a larger number of people to step forward and settle their outstanding tax amounts.

Civic data reveals that approximately Rs 45 billion in dues, pending for periods ranging from two to ten years, need to be recovered from both residential and commercial property owners.

A Lok Adalat is scheduled for the second week of December, with advance notice to be given to defaulters. In the previous fiscal year (2021-22), the civic body successfully collected Rs 4.79 billion from property tax defaulters through the amnesty scheme, involving 1.49 lakh property owners.

Although the scheme, offering an 80% discount on property tax penalties, has been reintroduced multiple times, civic activists have opposed its regular promotion by the civic body. Critics, such as Vivek Velankar of Sajag Nagrik Manch, argue that the frequent introduction of amnesty schemes sends the wrong message to diligent taxpayers. They contend that the approach lacks long-term effectiveness in tax recovery.

For the fiscal year 2023-24, PMC has set a target of Rs 23.18 billion for property tax collection. Additionally, the civic administration anticipates collecting nearly Rs 3 billion as water tax from residential properties as part of the property tax, resulting in total expected revenue of Rs 26.18 billion.

Following the elimination of octroi and local body tax (LBT), the civic administration has limited revenue-generation options, with property tax being a key source. Property tax is calculated based on the annual rateable value (ARV) of properties, and payments can be made through both offline and online modes.

The city's governing body is considering implementing an amnesty scheme for individuals who have defaulted on property taxes. This initiative would include a reduction in penalties, and property owners in Pune Municipal Corporation (PMC) areas can take advantage of the program through Lok Adalat. PMC's administrator, Vikram Kumar, expressed the civic administration's desire to incentivise tax payment among defaulters. The goal is to encourage a larger number of people to step forward and settle their outstanding tax amounts. Civic data reveals that approximately Rs 45 billion in dues, pending for periods ranging from two to ten years, need to be recovered from both residential and commercial property owners. A Lok Adalat is scheduled for the second week of December, with advance notice to be given to defaulters. In the previous fiscal year (2021-22), the civic body successfully collected Rs 4.79 billion from property tax defaulters through the amnesty scheme, involving 1.49 lakh property owners. Although the scheme, offering an 80% discount on property tax penalties, has been reintroduced multiple times, civic activists have opposed its regular promotion by the civic body. Critics, such as Vivek Velankar of Sajag Nagrik Manch, argue that the frequent introduction of amnesty schemes sends the wrong message to diligent taxpayers. They contend that the approach lacks long-term effectiveness in tax recovery. For the fiscal year 2023-24, PMC has set a target of Rs 23.18 billion for property tax collection. Additionally, the civic administration anticipates collecting nearly Rs 3 billion as water tax from residential properties as part of the property tax, resulting in total expected revenue of Rs 26.18 billion. Following the elimination of octroi and local body tax (LBT), the civic administration has limited revenue-generation options, with property tax being a key source. Property tax is calculated based on the annual rateable value (ARV) of properties, and payments can be made through both offline and online modes.

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