Pune Municipal Corporation (PMC) has raised objections to the state government's decision to levy property taxes on 32 newly included villages at double the rates of their earlier gram panchayat taxes.
The PMC argues that this move would not only result in significant financial losses but also create disparities in taxation, affecting previously included villages and urban property owners.
The 32 villages were incorporated into PMC limits in two phases—11 villages in 2017 and 23 villages in 2021. The municipal corporation began imposing taxes at municipal rates in these areas starting in 2018 and 2022.
However, this was met with resistance from local residents, leading the state government to cap the tax rates at gram panchayat levels.
The PMC highlighted that reducing taxes for these villages would be unjust to the residents of 24 other villages included in earlier expansions (1997 and 2011), who are paying municipal-level taxes. It would also lead to dual tax structures within the same city, which the PMC considers inequitable.
Administrative sources confirmed that the corporation plans to request the state government to reconsider its decision. As per the government’s directive, tax collection in these villages has been halted until the reassessment process is completed, causing substantial revenue losses for the PMC.
The PMC clarified that while municipal tax rates are higher than gram panchayat rates, the increases are implemented gradually over five years, starting with a 20% increment in the first year.
The corporation asserts that maintaining this structure ensures fairness across all properties under its jurisdiction.
