The state cabinet has given its approval to a proposal that offers a generous 40% discount in property tax for owners of self-occupied properties in Pune. This decision is a welcome relief for property owners, who have long been demanding this concession. However, the Pune Municipal Corporation (PMC) is likely to face a revenue loss of around Rs 400 crore due to the implementation of this tax discount.
Guardian minister Chandrakant Patil stated that the demand for the discount had been pending for a considerable time, and the final approval was given by the state cabinet. The discount scheme for self-occupied properties within the PMC limits was originally introduced in 1970 but was not officially notified as an Act by the state government. In 2019, the discount was declared illegal and scrapped, resulting in confusion and opposition from citizens. Subsequently, the civic body sent SMSs to 60,000 property owners, asking them to pay 40% additional tax with retrospective effect from 2019. However, this attempt at recovery was halted after facing resistance from the citizens.
The recent cabinet approval not only grants the 40% tax rebate to property owners but also provides respite to those who have already paid additional taxes from 2019. The excess amount charged to them will be adjusted in their future tax bills.
The distribution of property tax bills usually commences from April 1 each year. However, this year, the distribution was delayed as the administration was awaiting the cabinet’s decision. PMC officials estimate that the civic body would have collected around Rs 300 crore by mid-April if the bills had been sent on time.
With the cabinet’s decision in place, the civic administration will now proceed with the printing and distribution of property tax bills. The bills are expected to be dispatched by the first week of May after seeking a working permission from the government.
Typically, property owners who pay their tax before May 31 receive a tax rebate of 5% to 10%. The civic administration is likely to announce an extension to the deadline for payment of the bills with discounted rates, similar to the scheme extended till June-end in 2020 and 2021.
Before receiving the cabinet’s approval, the proposal underwent clearances from various departments, including finance and law. The chief minister’s office also gave its clearance to the proposal.
In an effort to improve distribution efficiency, PMC has enlisted post offices for the distribution of property tax bills. Previously, private agencies were responsible for this task.
The 40% tax discount for self-occupied homes is set to ease the financial burden on property owners and offer them some much-needed financial relief during these challenging times. The concession is expected to encourage timely tax payments and contribute to the overall financial well-being of property owners in the Pune Municipal Corporation limits.
