Is the Guardian Minister’s promise to restore the 40 pc discount in property tax real?

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Pune: Policenama online  – Pune PMC Property Tax | Thousands of Pune residents have been affected by the cancellation of the 40 percent discount given to house owners in the property tax by the Pune Municipal Corporation (PMC). Guardian Minister Chandrakant Patil has assured that the government will surely find a way out of this and provide relief to citizens. However, the citizens who have not paid the tax relying on this assurance are expressing their anger as compound interest of 2 percent per month is being levied on their arrears. (Pune PMC Property Tax)

 

In 1970, the Municipal Corporation had decided to levy property tax at 60 percent of the rent of flats occupied by owners. So, citizens living in owned houses were getting 40 percent discount in property tax. Meanwhile, in the local body audit report of the year 2010-11, 2012-13, the Accounting Head had objected that this policy implemented by the municipality was inconsistent with the Act. A hearing was also held with the Accountant General on this from time to time. However, after the report of the Accountant General, the state government cancelled the decision taken by the Municipal Corporation regarding the 40 percent discount.

 

The Municipal Corporation approved a resolution regarding the concession to be given while determining the annual taxable amount of property tax in a GB meeting in 2019. It was also conveyed through a letter to the state government that if the amount is recovered from the property holders registered since 2011 as per the order of the government, there will be a lot of dissatisfaction among them. It has been pointed out to the government that there will be a large number of complaints. Therefore, the letter was sent to the state government on August 28, 2019 that the government should not recover the 40 percent discounted amount.

 

On this, the government issued the government resolution (GR) in 1970 and ordered not to collect the 40 percent concession amount with retrospective effect. The demand of the Municipal Corporation was also accepted that no action should be taken against the then Municipal Commissioner as well as the officers of the Municipal Corporation as both the said concessions were made with the approval in the GB meeting and the notification by the Government since 1970.

 

According to this order of the government, the municipal corporation has approved the proposal to maintain the 40 percent discount given in the annual rent in the GB meeting on February 17 this year and sent it to the government. But the government has not taken a decision on it yet. As a result, since April 1, 2022-23, the 40 percent discount in the income tax bills for the year 2022-23 has been cancelled and the amount of the property bill has increased to a large extent.

 

Meanwhile, in August, the Property Tax Department sent an SMS to over 60,000 property owners that after cancelling previously given 40 percent discount in general tax to house owners, the entire amount of tax should be paid. Due to the uproar over this, the civic administration clarified that many people received these messages due to a technical error. It has been clarified that no action would be taken for the time being regarding the payment of outstanding dues.

 

Former ruling BJP office bearers have given a statement regarding the tax exemption to Urban Development Minister and Deputy Chief Minister Devendra Fadnavis. Also, Guardian Minister Chandrakant Patil promised tax rebate.
Therefore, the citizens whose 40 percent tax exemption has been cancelled, out of about one lakh such properties, only 30 percent have paid the full amount.

 

While many of the remaining 70 percent have paid only half the amount. From September 1, a penalty of 2 percent per month is being charged on the pending dues. However, as the government has not taken a decision in this regard, the citizens feel frustrated.

 

10 percent increase in property tax?

In the last five years, the civic administration had proposed a 10 to 12 percent increase in property tax every year.
But the Standing Committee had rejected it. However, since March, the administrator has been ruling the municipal corporation.

 

For the financial year 2023-24, another 10 to 12 percent increase in property tax has been proposed by the administration.

This tax increase is to be approved by the administration which has been proposing to increase it for the last five years.

Winding up of Value Based Tax proposal?

 

The Municipal Corporation had started efforts to levy taxes on the basis of market value of property. Studies were also started with the help of Gokhale Institute of Politics and Economics. After studying 200 properties in the first phase within the jurisdiction of one ward office, a survey was planned. The tender was also published. There is a discussion in the Property Tax Department that the proposal has been wound up for now by Municipal Commissioner Vikram Kumar.

 

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