Pimpri Chinchwad civic body for 'rational' property tax system to boost revenue

PIMPRI CHINCHWAD: Taxes for old properties in Pimpri Chinchwad assessed in 2006-07 may increase by up to 2.5 times if the civic administration has its way. The property tax department of the Pimpri Chinchwad Municipal Corporation (PCMC) has proposed rationalization of the taxes of these properties. It claimed that the move would fetch an additional revenue of Rs100-Rs150 crore in the 2020-21 financial year. “There will be no change in the taxes on the new properties,” municipal commissioner Shravan Hardikar told TOI after presenting the draft budget of 2020-21 with an outlay Rs6,627.99 crore and revised budget of 2019-20 with a Rs 6,187-crore outlay to PCMC standing committee chairperson Vilas Madigeri on Monday.

Though the draft budget has not proposed any increase in the property tax rates, the civic body is eyeing a tax rationalization to reduce the difference in the taxes of the old and new properties in an area. Hardikar said, “The rateable value of properties was frozen in some areas in 1996. The value was subsequently changed in a way that the old properties were not affected. This has created a massive gap between the taxes of the old and new properties in an area.” He added that the civic body would consider the depreciation of old properties while conducting rationalisation. “This will lead to an increase in the property tax of the old properties by 2-2.5 times. The municipal commissioner has powers to decide the rateable value of properties and there is no need to take the general body’s (GB) approval for it. Properties assessed before 2006-07 will be identified for rationalisation. These constitute 30-40% of the total properties in the city,” Hardikar said. Among the other major highlight of the draft budget proposals are the plan to raise Rs400 crore through bonds for environmental services and water supply projects. Hardikar said, “We will need around Rs600 crore in the next few years for implementing projects to have water security for the next 30 years. We want to implement projects to bring water from the Bhama Askhed and Andra dams. We also want to increase the pumping capacity of the Ravet pumping station. But the annual income of the department is only Rs75 crore.”

Source: https://realty.economictimes.indiatimes.com/news/regulatory/pimpri-chinchwad-civic-body-for-rational-property-tax-system-to-boost-revenue/74184096

February 18, 2020