8% hike in property tax
The civic administration of Pune has made a proposal to increase the property tax by 8 percent for the financial year 2013-2014 by pushing up the general tax structure.
The rate of taxes are finalised every year by the civic body, as per section 99 of the Bombay Provincial Municipal Corporation (BPMC) Act, 1949, and places the same before the standing committee.
If it is approved by the standing committee it becomes a part of the municipal commissioner’s annual civic budget. As per the BPMC Act, before February 20 the General Body (GB) must approve new tax rates.
The proposal for 2013-2014 states, there is a necessary to increase revenue from taxes and other sources considering the cost escalation in developmental projects and expenditure on providing civic amenities, especially projects related to water supply and sewage treatment.
The Pune Municipal Corporation (PMC) has proposed hike in fire brigade tax (0.25%), cleanliness tax (2%), road tax (0.75%), water cess (1%), sewage tax (2%). As water meters have not been installed, a hike of Rs 100 per slab has been proposed in the water tax. The PMC is also planning to give discounts to the property owners, who pay tax on time. If the property tax is paid before May 31, a 10% discount on tax of Rs 25,000 or less is offered, while a 5% discount is offered if the amount is more than Rs 25,001.
There are around 6 lakh residential properties and 75,000 non-residential properties and around 24,000 open plots and the civic body will provide discount to those who will carry out projects such as rain water harvesting and bio-composting in their properties. The main source of revenue for civic body is property tax. The billing and collection of property tax on residential, commercial, plots and other types of properties are handled by the department which is held privately or by government within the civic limits.
Property tax is charged on land, buildings and permanent improvements, mainly on immovable or tangible real property. All property holders are expected to pay the tax based on assessment done by the civic body on all commercial and residential properties situated within their limits. Property tax may also include basic house/building tax plus service taxes such as conservancy/scavenging tax and road tax which is collected on half yearly basis or annually.
Pune Municipal Corporation recovers Rs. 5 crore Property Tax in five days
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[...] hike of 8 percent was planned on the property tax in Pune for the financial year 2013-14. The proposal was kept forward in a recent meeting of the standing [...]