Pune Municipal Corporation Faces Tax Collection Overhaul Amid Concerns Over New Private Company
Pune Municipal Corporation Faces Tax Collection Overhaul Amid Concerns Over New Private Company
Pune Municipal Corporation (PMC) is seeing major shifts in its tax and taxation department, which has been a crucial source of funds for the city. Last year, PMC received national recognition from the central government for its efficient property tax collection. However, the department is now facing changes that could impact its operations.
A private bank has proposed a new company to handle PMC’s property tax collection, despite no formal agreement being in place. This company, involved in the energy sector, lacks experience in information technology. Concerns are rising as employees of this company are already working within the revenue department, accessing sensitive information without formal authorization.
For the fiscal year 2024-25, PMC has set a tax collection target of ₹2500 crore. The city’s 14 lakh property owners’ tax records have been managed through a computerized system since 2008, supported by the IT department. This model has drawn interest from other cities, which have sent delegations to study it.
The private bank, through its Corporate Social Responsibility (CSR) fund, has pledged to provide the necessary software for updating this system, worth ₹8 crore. Despite the promise of no direct costs to the PMC, the lack of formal agreements and the ongoing presence of the company’s staff in the revenue department raise concerns about potential issues and misuse of information.
The new system will involve not only the collection of taxes but also adjustments in tax rates and penalties. The situation remains unsettled with ongoing discussions and no finalised contracts.
