Pune: Property tax concessions for villages merged into the Pune Municipal Corporation (PMC) are unlikely, as the civic body has stated that it cannot levy property tax lower than twice the Gram Panchayat rate.
The municipal corporation levies tax under multiple heads, some of which are allocated to the state government. Given these constraints, the PMC has formally requested the Urban Development Department to reconsider its directive on tax reductions. This reduces the possibility of relief for the 32 merged villages.
Residents Oppose Higher Tax, Demand Reduction
After the merger of 34 villages into the Pune Municipal Corporation, the imposition of higher property tax led to widespread discontent. Residents have argued that while the PMC is aggressively collecting taxes, it has not yet provided essential civic services.
In response to public opposition, the Mahayuti government, ahead of the assembly elections, temporarily halted property tax collection in the merged villages. Additionally, it stipulated that the new property tax should not exceed twice the Gram Panchayat tax and announced plans to form a committee to finalize the tax amount. However, no such committee has been established yet.
The delay in tax collection is leading to mounting arrears, resulting in financial losses for the municipal corporation. As a result, the PMC has urged the state government to take a final decision on the issue.
PMC: Gram Panchayat & Municipal Tax Structures Are Different
The PMC administration recently submitted a letter to the Urban Development Department, emphasizing that Gram Panchayat and municipal taxes are fundamentally different. The municipal tax structure covers multiple components, including:
General Tax
Water Tax
Garden Tax
Road Tax
Tree Tax
Fire Brigade Tax
Sewage Disposal Tax
Sanitation Tax
Municipal Education Cess
Since PMC provides a broader range of services, it argues that reducing the tax rate below the mandated level is neither financially nor legally viable. The civic body has requested the state government to reconsider its tax relief directive.
₹450 Crore Collected from Merged Villages Despite Protests
Even as the demand for property tax reductions continues, the issue has also gained political momentum. This led to a temporary freeze on tax collection before the state elections.
However, PMC data for the financial year 2024-25 reveals that property tax collections from the merged villages are already substantial:
₹35.22 crore from Phursungi and Uruli Devachi
₹414.32 crore from the other 32 villages
