With the direction from the state government, the civic administration has asked the legal committee to not accept the proposal of increasing the rebate from 10 percent to 15 percent on annual ratable value of property tax and allow them to make bills considering 10 percent rebate for repair for existing properties in Pune. Also, the PMC has been questioned on their assessment files carried out by them for 2006-07 to 2010-11. PMC in reply stated that the rebate of 15 percent in place of 10 percent had been approved by standing committee.
As per the officials, the decision had been earlier sent to the state government for their approval but it has not been approved till now. Also, the state Assessor and Collector have also objected to the collection of 15% rebate stating that PMC is the only civic body in the state that had increased the rebate for repair of property from 10 to 15 percent.
The proposal has been decided for both residential and commercial property owners for repair of their properties and make it 10 percent as per the state government rule. The civic administration kept the proposal in front of the legal committee saying PMC had taken a decision long back to increase the rebate on annual ratable value of property tax from 10 to 15 percent for repair of property. The decision taken in the backdrop of floods in the city after the collapse of Panshet dam was implemented in 1971.
Pune Municipal Corporation has recently proposed to decrease tax rebate for repairing properties in Pune from 15% to 10%. The charging of 15% tax rebate was first initiated 42 years back.