Pune property tax to be hiked by 6%
Pune Municipal Corporation (PMC) has recently decided to hike property tax by 6%. This will be the first hike after four years.
Corporators at PMC standing committee meeting approved the hike for the financial year 2013-14 and it will be applied from April 2013.
Earlier, the civic body had proposed to increase property tax by 8% and after discussion came down to 6%.
The proposed 8% hike would had added more revenue to the civic body which was estimated at Rs 3,605 crore. But with the current hike, it is not going to make any substantial contribution to the civic body.
The 6% hike that has been approved will push up the revenue by around Rs 40 crore whereas the 8% hike would had given Rs 52 crore. Also, the proposal of hike in property tax was accepted to ensure sufficient revenue for development projects in Pune.
Furthermore, the tax proposal also states that increase in revenue was necessary considering the cost escalation in developmental projects and also expenditure on providing civic amenities like water supply and sewage treatment.
Also, the corporators have asked the civic body to hire more staff for property tax department so that PMC is able to add the left out properties in Pune under property tax net.
As per data, there are 30% of such properties which are not assessed by property tax department and main reason for the civic body to lose revenue.
However, the discounts that are provided to property owners who pay their tax in advance will be given. The tax rebate also continues for those implementing eco-friendly initiative of vermiculture composting, rainwater harvesting, solar light.
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