As the Maharashtra Legislative Assembly elections draw near, the state government has made a bold move by suspending property tax collection in 32 newly included villages within the Pune Municipal Corporation (PMC) limits. These villages, which were integrated into the PMC in recent years, have been under review for their tax rates. The government has instructed the PMC to levy property tax at double the rate that was previously applied when the villages were under Gram Panchayat jurisdiction. This decision has led to the suspension of any tax collection until a final decision is made.
This suspension is causing quite a stir as it is expected to have a significant financial impact on the PMC. There are concerns about potential disputes arising between residents in the old and new boundaries regarding the tax structure. The Maharashtra Government had previously halted tax collection in these villages before the Lok Sabha elections, further delaying a resolution and raising questions about the financial stability of the PMC.
In 2017, 11 villages were brought under the PMC’s jurisdiction, followed by an additional 23 villages in 2021. Property tax collection in these areas was initiated based on the PMC’s municipal tax rates, which are notably higher than the taxes levied by Gram Panchayats. This led residents of these villages, including those in Uruli Devachi and Phursungi, to demand the cancellation of property tax.
While the government has now suspended tax collection for 32 villages (excluding Uruli Devachi and Phursungi), it has also proposed the formation of a new municipal council to address governance issues in these areas. A total of 4,37,345 properties in the 34 villages incorporated into the PMC were affected by this change. The PMC had issued tax bills totaling approximately ₹595 crore for the financial year 2024-25, with an expected revenue of around ₹600 crore.
However, the state government’s decision to apply Gram Panchayat taxation rules will result in a drastic reduction in revenue. The expected revenue of ₹600 crore will now be slashed to just ₹200 crore, marking a staggering loss of ₹400 crore in potential revenue for the PMC. This move has left many questioning the financial future of the PMC and how it will cope with this significant loss.
Thanks For Reading Report of Punepress.com