PMC to levy worth primarily based property tax on 100 properties

Pune: The Pune Municipal Company (PMC) has determined to levy value-based property tax on 100 properties on a pilot foundation and can develop the scheme to the whole metropolis if it proves profitable.

Pune Municipal Commissioner Vikram Kumar stated, “PMC had appointed Gokhale Institute of Politics and Economics to review value-based property tax. We had a gathering with them on Monday and determined to implement the scheme on a pilot foundation. We’ll begin with 100 properties within the metropolis.

At current property tax is levied as per the prepared reckoner fee of the yr of registration of the property involved, as a result of which many aged properties within the metropolis are paying much less property tax than new properties. The property tax levied on outdated properties is disproportionate to their measurement whereas newly registered properties are being charged in large quantities. A lot in order that the property tax for 2BHK (Bed room-Corridor-Kitchen) in some areas of the town is greater than Rs 35,000 each year. This distinction in property tax is exactly the explanation why the civil administration is contemplating levying property tax in response to the worth of the property. And, it’s paying Rs 22.57 lakh to the Gokhale Institute to review over the subsequent 4 months and put together an in depth report on all facets of the shift.

Extra Municipal Commissioner Vilas Kanade, who was earlier the pinnacle of the property tax division, stated, “It’s true that there’s a distinction between outdated and new properties. It’s also true that each varieties of taxpayers are utilizing the identical amenities together with roads, water, drains and gardens. Then why the distinction?”

Nonetheless one other view is that the amenities have been developed with the tax cash beforehand paid by the house owners of the outdated properties. At the moment, land acquisition and building prices have been additionally low. A PMC official stated on situation of anonymity that the Gokhale Institute will conduct an in depth research to work out a tax construction primarily based on capital value after which the company will take a call on the identical.

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