Pune Municipal Corporation General Body Turns Down 5% Property Tax Increase Proposal
Pune Municipal Corporation General Body Turns Down 5% Property Tax Increase Proposal
Pune, February 19, 2026: The general body of the Pune Municipal Corporation (PMC) has unanimously declined a proposal to raise property tax by five per cent, despite the plan receiving prior approval from Municipal Commissioner Naval Kishore Ram. Elected representatives across party lines opposed the move, citing concerns about placing additional financial strain on residents.
The proposal originated within the civic body’s property tax department, which had initially recommended a 10 per cent increase to strengthen municipal finances. The commissioner later scaled it down to five per cent before presenting it to the general body for final consideration.
Leader of the House Ganesh Bidkar stated that the ruling party was unwilling to impose fresh taxes on citizens. He pointed out that property tax rates have remained unchanged for over a decade and said the administration should focus on improving revenue collection rather than raising rates.
According to Bidkar, plugging revenue leakages and expanding the tax base would be more effective than increasing the burden on compliant taxpayers.
BJP leader Varsha Tapkir highlighted administrative inefficiencies at ward offices, alleging that some residents seeking property assessment face delays and, in some cases, demands for bribes. She argued that bringing more properties into the tax net should be prioritised over revising tax rates.
Echoing similar concerns, Congress leader Chandu Kadam claimed that the assessment of newly constructed buildings and issuance of no-objection certificates were being unnecessarily delayed, affecting revenue generation.
Citizen groups also weighed in against the proposed hike. Vivek Velankar, president of the Sajag Nagrik Manch, questioned the rationale for increasing tax rates when overall collections have already risen sharply. He noted that property tax revenue has grown significantly over the past nine years and is expected to increase further this financial year.
Velankar argued that even a modest expansion of the tax base could generate higher returns than a five per cent rate hike, which he estimated would have added only a limited amount to the civic body’s income. He also pointed to substantial pending dues from various government agencies, suggesting that recovering these arrears could improve the PMC’s finances without increasing taxes.
He added that effective recovery of outstanding payments might even create room for providing relief to taxpayers instead of raising rates.
Special Meeting Likely on Tax in Merged Villages
Bidkar further indicated that a special general body meeting may soon be convened to address property tax concerns in recently merged villages. Residents in these areas have expressed dissatisfaction after tax amounts reportedly rose sharply following their inclusion within PMC limits. Although the state government had earlier suggested a gradual increase in taxes for such localities, no formal directive has yet been issued.
