Pune: Property Tax Relief Likely For 32 Merged Villages As NCP Proposes 35% Rate Reduction
Pune: Property Tax Relief Likely For 32 Merged Villages As NCP Proposes 35% Rate Reduction
Pune, June 9, 2026: Residents of Pune’s 32 merged villages could receive substantial property tax relief if a new proposal submitted to the Pune Municipal Corporation (PMC) receives approval. Leaders from the Nationalist Congress Party (NCP) and NCP (Sharadchandra Pawar) have jointly demanded a reduction of up to 35 percent in the fair rental values used to calculate property tax in these areas.
The proposal was presented before the PMC Standing Committee and details were shared during a press conference by Opposition Leader Nilesh Nikam and NCP-SP group leader Kaka Chavan. Corporators Dattatray Dhankawade, Suhas Tingre and Ajit Ghule were also present.
According to Nikam, residents of the merged villages have repeatedly voiced concerns over what they consider excessive property tax assessments following their inclusion within PMC limits. He noted that the state government had previously halted the recovery of tax arrears after widespread objections and had directed the civic administration to ensure that property taxes in these areas did not exceed twice the amount previously charged by the respective Gram Panchayats.
Despite these directives, residents claim the issue remains unresolved. Political representatives said the matter has been raised several times in PMC meetings, but a permanent solution has yet to emerge. As a result, a fresh proposal outlining changes to the tax assessment framework has been submitted for consideration.
The proposal recommends creating separate property assessment categories for all 32 merged villages and reducing the fair rental rates specified under existing taxation norms by up to 35 percent. It also seeks revisions to the method used for calculating taxable property values.
Under the proposal, open plots, mobile towers and IT-related properties would not be eligible for the concession. It further suggests that only 15 percent of the constructed area of properties in the merged villages should be considered as carpet area for taxation purposes.
The proposal also calls for a simplified flat-tax system for properties previously registered with Gram Panchayats and seeks a waiver on penalties for unpaid taxes accumulated during the period when the state government had suspended tax collection.
For residential and commercial properties lacking Gram Panchayat records, the proposal recommends a one-time tax assessment based on supporting documents such as electricity bills, trade licences and other government-issued records.
If the Standing Committee and the PMC General Body approve the recommendations, thousands of property owners across the 32 merged villages could benefit from lower tax liabilities and a revised assessment mechanism.
