Pune MLAs Demand Property Tax Waiver For Flats, State Government Assures Proper Review
Pune, 21st July 2023: In the ongoing legislative session in Mumbai, MLAs from Pune raised a strong demand to waive property tax on flats up to 500 square feet within the Pune Municipal Corporation (PMC) limits. They also urged the implementation of the Abhay Yojana to recover arrears.
Responding to the demand, Industry Minister Uday Samant assured the MLAs that a proper decision would be made after thoroughly examining the financial aspect of the PMC.
MLA Ravindra Dhangekar put forth an interesting proposal in the assembly, suggesting property tax exemption for flats up to 500 square feet in Mumbai. A similar proposal for Navi Mumbai is already with the government. Dhangekar argued that although granting this tax concession might result in a deficit of Rs 200 crores in PMC’s budget, it could be covered if leakages in the municipal budget are addressed, and arrears are recovered. He emphasized that this tax waiver would bring much-needed relief to common citizens.
MLA Sunil Tingre drew attention to the arrears of property tax amounting to Rs 3,600 crores, which includes principal and interest. To recover these arrears, Tingre proposed the implementation of the Abhay Yojana, offering a 50 to 75 percent discount on interest. He estimated that this move could recover at least Rs 6,000 crores, providing funds for development.
Supporting the demand for tax exemption on houses up to 500 square feet and arrears recovery, MLA Bhimrao Tapkir raised a critical question, questioning the municipality’s stance on providing essential services like water, health facilities, drainage, and health services in 34 villages.
Responding to the discussion, Uday Samant revealed that the municipality’s property tax revenue stands at Rs 1,700 crore. Offering a 40 percent discount on residential property tax in Pune could create a burden of Rs 400 crores. He mentioned that Chief Minister Eknath Shinde has already decided to introduce a tax amnesty policy for Navi Mumbai and assured that the government would consider the financial aspects of other municipal corporations before making a decision.
Samant also stated that proposals related to infrastructure development in included villages are under consideration, and decisions would be made promptly.
MLAs also highlighted the issue of incorrect taxation on 11 villages included in the municipal corporation in 2017, leading to a significant financial burden. Prajakt Tanpure urged the implementation of the decision to refund the excess money collected, but no specific response was given by Samant during the session.
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