PMC’s Amnesty Scheme Backfires: Over 40% Beneficiaries Default Again
Pune: PMC To Begin Borewell Survey To Identify And Seal Defunct Structures
Four years after the Pune Municipal Corporation (PMC) introduced its Property Tax Amnesty Scheme to recover dues from the defaulters, nearly half of its beneficiaries have defaulted again. The incident has raised questions about the scheme’s effectiveness and its impact on honest taxpayers.
Launched in 2020-21, the scheme allowed defaulters to clear property tax dues with waivers on penalties and interest. Around 1,49,683 defaulters availed of the scheme, but the PMC incurred a loss of ₹210 crore due to waivers. The scheme was reintroduced in 2021-22, attracting 66,454 defaulters but resulting in another ₹64 crore loss.
While the schemes temporarily increased revenue, critics argued they rewarded defaulters and penalized honest taxpayers. Activists warned these schemes would encourage deliberate non-payment of taxes in anticipation of future amnesty programs. Their fears were confirmed by data obtained under the RTI Act. By December 31, 2024, 63,518 (42%) of those who benefited from the 2020-21 scheme had defaulted again. For the 2021-22 scheme, 44,685 (67%) beneficiaries defaulted once more.
An activist stated, “Honest taxpayers are penalized while defaulters are repeatedly rewarded. This trend encourages dishonesty.” He urged the PMC to recover dues from repeat defaulters and bar them from future amnesty benefits.
Experts suggest stricter enforcement measures, such as legal action and property seizures, instead of schemes that promote non-compliance. The PMC has yet to respond to the data or announce further action.
With losses mounting and honest taxpayers demotivated, the PMC faces pressure to reform its tax collection system and prevent future defaults.
