Pune: The Pune Municipal Corporation (PMC) has withdrawn the 40% tax concession for 2,20,616 properties following a detailed survey.
These properties, identified as being rented out or owned by individuals with multiple houses, will be charged the full property tax in the upcoming 2024-25 billing cycle.
Pune city, along with 34 newly added villages, has approximately 14,25,000 properties, including 9,00,000 residential units and the rest being commercial establishments or open spaces.
Since 1970, PMC had been offering a 40% tax concession on single residential properties. However, a state government audit flagged this policy, resulting in an order to discontinue the concession.
Subsequently, in 2019, PMC withdrew the 40% concession from 4,64,222 residential properties and started collecting 100% tax. This included properties purchased after 2019.
The decision sparked significant public backlash, with citizens highlighting the financial burden. Following sustained protests and media campaigns, the state government reinstated the concession in 2023.
To avail of the reinstated concession, citizens were required to submit a PT-3 form along with proof of self-occupation. Despite this, only 95,000 applications were submitted.
In response, PMC deployed 350 staff members to conduct a door-to-door campaign, helping numerous citizens fill out the necessary forms.
During the inspection of 4,63,222 properties, it was determined that 2,42,606 were self-occupied, while 2,20,616 were rented out. The latter category is no longer eligible for the tax concession, and full tax recovery will be implemented.
"We have ensured a detailed survey and identified properties that are ineligible for the concession," said Madhav Jagtap, Deputy Commissioner of PMC's Property Tax Department.
