PMC Plans Additional Tax on Hostels and PG Accommodations to Boost Property Tax Collection

Pune : In a bid to enhance property tax revenue, the Pune Municipal Corporation (PMC) is contemplating imposing an additional tax on student hostels and paying guest accommodations. Reliable administrative sources have affirmed that the civic body has presented a proposal to the standing committee for consideration and approval.

Given the significant student population in the ‘Oxford of the East,’ many individuals have converted their flats and buildings into hostels or paying guest accommodations to cater to students attending academic colleges or preparing for competitive examinations such as UPSC, MPSC, banking, IIT, and medical admissions.

Despite these properties serving commercial purposes, they currently incur taxes at residential property rates. Officials, speaking on the condition of anonymity, have indicated that the proposal is in its final stages and is expected to receive approval soon.

Ujwal Keskar, a leader from the Bharatiya Janata Party (BJP), has raised objections to the proposed move and conveyed his concerns in a letter to Municipal Commissioner Vikram Kumar. 

Keskar emphasized the need for clarity in policies regarding taxes on hostels and paying guest accommodations, suggesting that the municipal corporation should seek guidance from the state government before making any decisions.