Pune News: Delayed Tax Recovery In 32 Merged Villages Hits PMC RevenueÂ
Pune News: Delayed Tax Recovery In 32 Merged Villages Hits PMC RevenueÂ
Pune, June 27, 2025: The Pune Municipal Corporation (PMC) is facing a major setback in property tax recovery from 32 newly merged villages, resulting in a significant shortfall in overall revenue collection. The delay, officials say, is primarily due to the lack of clarity from the state government on how property tax should be calculated in these areas.
Residents of the merged villages have been demanding a reduction in property tax rates, arguing that the current charges are far higher than what they paid under the gram panchayat system. The state government has directed that property tax in these areas must not exceed double the previous rates. However, PMC officials claim that the state has not issued specific guidelines on rateable values or the formula to be applied, leaving the civic body with no choice but to levy taxes using standard methods.
A resident of Neco Beaumont society in Handewadi stated that they have been awaiting property tax bills for the last 3 years. The newly merged villages are facing this issue as not many have received the bills since the merger happened. There is no clear communication from the PMC and the residents are worried they would be heavily burdened with the tax amount to be paid at once.
As a result of these complications, PMC’s revenue from property tax has dropped sharply. The civic body earned ₹1,000 crore by the end of June 2025—₹350 crore less than the ₹1,350 crore collected during the same period last year. Senior officials expect a slight recovery as more property owners may pay by the end of the month to avail tax discounts.
Another resident of Pisoli complained that the tax bills are being sent without giving us the basic facilities for which we are charged heavily. What’s the use of paying taxes when we don’t get water, road, drainage and amenities which are necessary and it’s the duty of the PMC to provide it to us.
In a bid to address the issue, PMC may soon introduce an amnesty scheme, as advised by the state government, to encourage residents in merged areas to clear their dues without penalties.
Adding to the problem, the implementation of a 40% rebate linked to PT3 forms has caused confusion among property owners. Many eligible residents are unable to avail the discount due to administrative delays or lack of clarity, further affecting collections.
Minister of State for Urban Development Madhuri Misal confirmed that PMC has been instructed to resubmit a revised tax calculation proposal to the state government. She acknowledged that residents are unwilling to accept the current tax structure, which they say results in fivefold increases compared to gram panchayat rates.
Residents argue that under the gram panchayat system, they paid ₹2 per square foot annually, while PMC’s monthly rate translates to ₹24 per square foot annually—an unsustainable hike for many.
PMC data show that before 2017, the civic body governed around 8.5 lakh properties. After the merger of 11 villages, the number rose to 10 lakh, and the recent addition of 23 villages has pushed the total to 12 lakh properties. However, tax compliance in these new areas remains low.
With mounting pressure from residents and an urgent need to boost revenue, PMC now finds itself in a critical position—balancing fair taxation with fiscal responsibility and public acceptance.
