Pune: Amid Freeze On Collection, ₹30 Crore Property Tax Paid Voluntarily In Merged PMC Areas
Pune News: Delayed Tax Recovery In 32 Merged Villages Hits PMC Revenue
Pune, May 14, 2025: In a surprising show of civic responsibility, residents of 32 villages recently merged into the Pune Municipal Corporation (PMC) have voluntarily paid ₹30.44 crore in property tax since May 1, despite an official freeze on tax collection.
These contributions come even though PMC has not issued any official tax bills this financial year. Instead, around 22,000 property owners proactively accessed their dues online and chose to pay, amid uncertainty over future revisions to property tax norms.
The Maharashtra government had earlier ordered PMC to halt property tax collection in the merged areas after protests erupted over sharp tax hikes without corresponding improvements in basic infrastructure. Residents cited the absence of essential services such as roads, streetlights, water supply, and drainage as key reasons for resisting the revised tax demands.
The government directive included a pause on penalty fees and capped PMC’s tax rate to not more than twice the previous charges levied by gram panchayats. However, with the Lok Sabha elections intensifying public pressure, the state offered temporary relief while reassessing the tax framework.
Despite the freeze, PMC has continued to prepare internal tax records. Fearing potential interest charges or inflated bills once the freeze is lifted, many residents are choosing to clear their dues now to avoid higher payments later.
According to municipal data, the merged villages account for around 4.5 lakh properties, from which PMC expects to generate ₹270 crore annually. The total outstanding property tax dues in these areas have now crossed ₹850 crore.
Speaking on the trend, Pratibha Patil, Head of the PMC Property Tax Department, said, “Though official bills haven’t been issued, villagers are obtaining the information online and paying their dues voluntarily.”
Municipal officials have also assured that if the government reduces the tax rates in the future, any excess payments made will be adjusted in subsequent bills, ensuring that early taxpayers are not penalised.
