Saurabh Rao, the Municipal commissioner tabled a proposal to increase property tax by 12% in the collective property tax of Rs. 6,085 crore draft civic budget for the financial year 2019-20. This budget was tabled before the standing committee recently.
The proposed budget of Rs. 5,870 crore for the next financial year, is more than Rs. 200 crore of the last year. For the first time, Pune Municipal Corporation passed Rs. 6,000 crore figure. While talking about the property tax, it was detailed as the inclusion of 5.5% increase in general tax, 1.5% in water benefit tax and 5% in sewage benefit charges.
While giving his budget speech, Rao said that the civic administration is hopeful to generate additional revenue of Rs. 110 crore from the proposed hike. The same proposal is applicable to cellphone tower companies, IT and ITES companies. The proposed hike is required to be sanctioned by the standing committee and general body after which the increased rates will come into effect.
Apart from the increased property tax, the residents will also have to pay an extra 15% amount in water tax which already got sanctioned by the General body under the 24X7 water supply project implementation.
Rao also said that the administration will take necessary actions to improve tax collection. He also assured that the increase in tax collection during the fiscal year 2019-20.
Rao, Municipal commissioner was quoted saying that, the civic body has limited resources of revenue generation and tax collection process is one of them. Hence, we are focusing on the optimization of the collected tax. He also said that we are also planning to take extensive steps to increase collection and to recover outstanding dues.
He further said that we plan to introduce IT-based programmes for monitoring the recovery process and to minimize loopholes. The civic body has proposed an increase in property tax for the third consecutive year.
Last year, the Pune Municipal Corporation proposed a 15% hike in property tax which was rejected by the standing committee and the general body of the PMC.