PMC Proposes 10% Property Tax Increase, Decision To Be Taken In February 6 MeetingĀ
Pune: Property Tax Relief Likely For 32 Merged Villages As NCP Proposes 35% Rate Reduction
Pune, February 3, 2026: The Pune Municipal Corporation (PMC) has proposed a 10 per cent increase in property tax as part of efforts to strengthen its revenue base, a move that has triggered sharp criticism from citizens, activists, and political representatives. The proposal is scheduled to be discussed and decided by the Standing Committee on February 6.
At present, the Standing Committee comprises only senior civic officials, as elections to form a new general body of corporators are yet to be held. This has further fuelled opposition, with critics questioning the timing and transparency of the proposed hike.
Activists have pointed out that PMC is yet to recover massive pending property tax dues from a limited number of large defaulters. According to civic data cited by activists, over ā¹7,700 crore is outstanding from around 1,600 property owners, including substantial arrears from government and semi-government departments. They argue that the civic body should prioritise recovery of these dues instead of increasing the tax burden on compliant taxpayers.
Political voices have also joined the opposition. Leaders from various political parties stated that PMCās actual property tax collection has fallen short of its projected targets for the current financial year, largely due to unpaid dues from large property holders and cases pending in courts. They have demanded relief for smaller homeowners, including implementation of earlier promises to exempt properties up to 500 sq ft from property tax.
Residents and social activists have linked their opposition to what they describe as poor civic services. Issues such as deteriorating roads and footpaths, irregular water supply, inefficient garbage collection, encroached public spaces, and unhygienic conditions on key city bridges were highlighted as major concerns. Citizens argued that basic infrastructure and services have not kept pace with the taxes already being collected.
Several residents expressed resentment that civic funds are allegedly prioritised for large public events or cosmetic repairs, while everyday civic needs in residential areas remain neglected.
Responding to the criticism, PMC officials defended the proposal, stating that property tax rates have not been revised since 2016 despite a significant rise in inflation. Officials maintained that the proposed 10 per cent increase is modest and necessary to meet current financial requirements, adding that the final decision will be taken only after the Standing Committeeās approval.
The February 6 meeting is expected to be closely watched, as public opposition continues to mount against the proposed hike.
