Pune, 1st February 2026: Pune residents may soon face a 10% increase in property tax, as the Pune Municipal Corporation has placed a proposal for the hike before its Standing Committee. The move comes after several years without any revision in property tax rates, even as the city’s expenditure has steadily increased.
According to the civic administration, PMC’s capital expenditure and maintenance costs are rising every year, while its income has failed to keep pace. Delays in receiving GST compensation and stamp duty revenue from the state government have further strained the corporation’s finances.
In addition, PMC has not been receiving construction-related fees from developments within the PMRDA limits, worsening the revenue shortfall.
Officials say this financial pressure has started affecting development works across the city. To address the situation, the administration has proposed a 10% increase in general property tax.
The proposal will be taken up for a decision by Municipal Commissioner and Administrator Naval Kishore Ram in the Standing Committee meeting scheduled for Monday, February 2. A final decision must be taken before February 20 and approved by the General Body.
The issue has also taken on political significance. With the BJP set to take control of the civic administration following the mayoral election, this could be one of its first major decisions. Whether the party approves the tax hike or rejects it will be closely watched by Pune residents.
Meanwhile, former corporators have strongly opposed the proposed increase. They have argued that raising taxes is not the only way to boost revenue and that the administration should first fix flaws in tax assessment and collection. Former opposition leaders have alleged that the proposed hike is an attempt to cover up administrative inefficiencies.
They have demanded that the property tax increase be scrapped and instead called for simpler assessment procedures, fewer approval stages, and a stronger system to check commercial misuse of properties.
According to them, these measures alone could generate hundreds of crores of rupees in additional revenue without burdening citizens with higher taxes.
