PCMC proposes 5% hike in property tax

Q: The Pimpri Chinchwad Municipal Corporation has proposed a 5% increase in tax on residential properties from the next financial year.

Shweta Salunkhe, Pune

27th January 2016

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Replies (4)

As rightly said by Gauri, the Pimpri Chinchwad region seems to have made this move with the view of increasing their revenue. It is one of the upcoming suburbs in Pune and has large open spaces. This has helped it to attract premier real estate developers to the region for their new projects. I as an investor would at the flip side of this, Prices are surely expected to rise in near course, so this would be the opportune moment to make an investment for the future. Take an example from my recent investment in Antheia project by Mahindra Lifespaces which is situated just a 5 minute drive from the Mumbai-Pune Highway. This suburb is located near the fast developing industrial and IT hub, so it won’t be surprising to see property in the area expand quickly.

Priya Desai, Mumbai

11th March 2016

Comment

This seems like a fairly steep increase in taxation for residential properties. Does anyone have any information about the justification behind this increase?

Aarav Sharma,

27th January 2016

Comment

Earlier, the department had proposed similar hikes for the previous two financial years, but they were rejected. But we hope that this time, the proposal will be approved. Although PCMC is not facing any financial constraints at present, it is taking efforts to increase revenue only.

Gauri Shinde, Pune

27th January 2016

Comment

Hello Gauri,
Do you think it is reasonable? I don't think so. Even corporators don't want any hikes in taxes. There should be no rise in property tax rates for residential as well as for commercial properties. The civic body is already collecting cleanliness and special cleanliness taxes from citizens.

Shweta Salunkhe, Pune

27th January 2016

No, i don't think it is reasonable because earlier PCMC has proposed a 2% hike in general tax for residential properties that have rateable value up to Rs 12000, and a hike between 2% to 5% for residential properties with rateable value up to Rs 30000. And now 5% for residential properties is not good in any manner.

Gauri Shinde, Pune

27th January 2016

@Gauri,
It is also come to know that the proposal has suggested a 1% increase in drainage benefit, water supply benefit and road taxes for residential and non-residential properties.

anand modak, Pune

27th January 2016

Hello Shweta,
But with the Municipal Elections schedule to be held next year, the proposal is likely to face opposition from a large section of corporators when it comes up for discussion for discussion before the standing committee next week.

Gauri Shinde, Pune

27th January 2016

Comment

As per the head of property tax department PCMC, the department has proposed a total hike of 5% in property tax for residential properties and 7% for no-residential properties for 2016-17. The department hopes to get an additional of Rs. 42 crore if the proposal is accepted by the civic general body.

anand modak, Pune

27th January 2016