Pune, 14 March 2026: The proposal to grant a property tax waiver for residential properties measuring up to 500 square feet in Pune has been rejected by the Pune Municipal Corporation (PMC) standing committee after accepting the administration’s negative recommendation.
The issue drew attention as the Bharatiya Janata Party (BJP) had earlier promised property tax relief for smaller homes in its civic election manifesto. However, during Friday's standing committee meeting, the civic administration advised against the proposal, stating that it would significantly impact municipal revenue.
The proposal was moved by Congress group leader Ramchandra Kadam, who suggested that residential properties below 500 sq ft within PMC limits should be exempted from property tax.
According to the administration’s report, there are around 4,43,553 such properties in Pune, which together generate approximately ₹268 crore in property tax every year.
Officials also noted that many multi-storey residential buildings have small-sized apartments. If tax exemption were granted purely based on the size of individual flats, entire buildings with units below 500 sq ft could qualify for tax relief.
The administration warned that this could lead to a substantial drop in revenue and affect the civic body’s ability to fund infrastructure and essential services.
The report further stated that such a policy could encourage more buyers to prefer smaller homes mainly to benefit from the tax exemption, potentially affecting the housing pattern in the city.
Standing Committee Chairman Shrinath Bhimale said the proposal was introduced by Congress but the authority to take a decision lies with the committee.
BJP has assured tax relief for citizens from the lower-income group. The municipal budget for the coming year is currently being prepared, and an appropriate decision in the interest of Pune residents will be taken then. The timing of such a decision cannot be dictated by Congress or the administration.Shrinath Bhimale, Standing Committee Chairman
Congress leader Ramchandra Kadam criticised the move, stating that the ruling party had promised tax relief in its manifesto.
The BJP mentioned property tax exemption in its manifesto, but the same proposal has now been rejected. They had the opportunity to take a decision in favour of Pune residents.Ramchandra Kadam, Congress leader