In a proposal presented to the standing committee, members of the Pune Municipal Corporation (PMC) has suggested an amnesty scheme which is aimed at incentivising property owners who are yet to pay their property tax.
According to officials of the civic body, property tax collection in the first month of the financial year (FY) 2019-20 stood at Rs 246 crore, which is more than the tax collected in the corresponding period of the previous fiscal. Most of the property owners are not paying their property taxes owing to the penalties imposed which has substantially increased their pending dues.
Non-availability of funds led to delay in initiating development works in the city. Incentivising homebuyers by offering them a discount on the penalty for a specific period is one way of promoting the amnesty scheme.
According to PMC officials, implementing amnesty scheme would result in reducing the penalty on structures that have been constructed without proper approval. The civic body usually levies three times the property tax on such unauthorised structures and even seize the properties of the defaulters. As of date, it has confiscated 600 properties with an estimated market value of Rs 500 crore.
Pune currently has 8.3 lakh taxable properties, of which one lakh are commercial units. As many as 1.67 lakh more properties came under the jurisdiction of PMC’s purview after 11 villages were merged in 2017 taking the total units to 10 lakh. To add to this, the civic body had also anticipated revenue from the newly merged villages as well.
The standing committee is currently considering the proposal and a decision on the same is expected by next week.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.