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Thursday, April 22, 2021

Pimpri: Property tax hike from April 1; BJP opposes move, NCP to protest

As per the new property tax hike plan, if an individual has a flat with 500 square feet purchased in 1990-91, the person would be paying Rs 2,800 property tax today. The rate has gone up from Rs 5.40 per square feet to Rs 11 per square feet.

Written by Manoj Dattatrye More | Pune |
Updated: March 28, 2021 12:15:01 pm
PCMCOld properties constructed before 2005.

Even as the civic administration of the PCMC gets ready to implement new property tax rates on old properties constructed before 2005-2006, the ruling BJP has strongly opposed the move and decided to approach the state government to get the proposal scrapped.

The civic administration has increased property tax on 2.5 lakh old residential properties and over 3 lakh non-residential properties in the industrial city. Shravan Hardikar, who was the municipal commissioner until last month, using his powers effected the hike in property tax on old properties. The new commissioner, Rajesh Patil, stuck with the decision.

Expressing his party’s strong opposition, BJP House leader Namdeo Dhake told The Indian Express on Saturday, “We have strongly opposed the civic administration’s proposal to hike property tax. We have rejected the proposal in the civic standing committee and the general body meeting.”

Dhake further said since the civic administration was determined to implement the plan, the BJP had decided to approach the state government. “We have rejected the move… If the administration still goes ahead by implementing the hike we will have no option but to approach the state government to get the proposal cancelled,” he said.

Raju Misal, House leader of the NCP, which is the main opposition leader, said, “We have opposed the hike. We have decided to protest the move and meet the commissioner to revoke the decision,” he said.

Misal also said the then municipal commissioner Shravan Hardikar used his special powers to implement the decision. “But the state government can revoke the decision,” he added.

Dhake said they had kept the proposal in abeyance.

Smita Zagade, PCMC deputy municipal commissioner, said the property tax on old residential properties was hiked as there was a massive difference between per square feet rates and subsequent property tax calculated on old and new properties. For instance, on old properties belonging to 1990-91, the per square feet rate applicable was only Rs 5.40.

“However, if someone purchases properties today, the per square feet rate is Rs 29.94. We wanted to reduce the widening gap and have, therefore, increased the property tax on old properties,” Zagade said.

Zagade, however, claimed that the hike in property rates of old residential properties were nominal. “Similarly, there is relief to new properties as the hike is paltry,” she added.

According to the new property tax hike plan, if an individual has a flat with 500 square feet purchased in 1990-91, the person would pay Rs 2,800 property tax today. The rate has gone up from Rs 5.40 per sq ft to Rs 11 per sq ft. “So far, you were paying Rs 1,080. Property tax will be doubled,” said Zagade, adding that only the property tax in case of a flat purchased in 1990-91 will be doubled while the rest will have a much lower hike.

For a 500 sq ft flat purchased in 1992-93, a family paid a property tax of Rs 1,328 annually. “From April 1, the family will have to pay Rs 2,260, an increase of Rs 900,” Zagade said.

Similarly, for a property purchased between 2002 and 2005, the property tax will go up from Rs 1,171 to Rs 1,970. The rate for these three years will go up from Rs 8.64 to Rs 12.58 per sq ft.

For properties purchased between 2006 and 2020, which are considered new, the rate is Rs 17.18 per sq ft to Rs 29.94 per sq ft. The rate will go up to Rs 31.44. The properties purchased between 2006 and 2020 will have an increase from Rs 180 to Rs 337.

For old non-residential properties purchased between 1990 and 2005, such as commercial and residential properties, the hike will be between Rs 1,500 and Rs 3,500 annually. Whereas for new properties purchased between 2006 and 2020, the hike will be from Rs 700 to Rs 1,500.

There are around 2.5 lakh old residential properties in Pimpri-Chinchwad and around three lakh commercial and residential properties.

Zagade said the previous municipal commissioner used his discretion to hike property tax.

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