A week after it said there will be no hike in property taxes, the Pune Municipal Corporation (PMC) administration on Wednesday proposed a hike of 5.5 per cent in property tax, as well as hikes in water tax and sewage charges, for the next financial year. The civic body said it needed to generate more revenue from taxes to meet its increasing expenditure, as it tries to provide civic facilities to the burgeoning population in the city.
The PMC administration has proposed a hike of 5.5 per cent in general property tax, 1.5 per cent hike in water tax and 5 per cent hike in sewage charges for the next financial year. “The proposed hike would increase civic revenue by Rs 110 crore. The new tax structure would be applicable for mobile tower companies and information technology companies,” said Municipal Commissioner Saurabh Rao.
Rao said the hike in the tax structure has been proposed to balance the increase in the civic body’s expenditure by boosting revenue collection from its taxes.
If the proposal is approved, the property tax would be in the range of 22.25 per cent to 55.5 per cent, the new water tax would be 7.25 per cent and sewage charge would be 14.5 per cent in the next financial year.
The general property tax is currently in the range of 16.75 per cent to 50.0 per cent. The water tax is 5.75 per cent and sewage tax is 9.5 per cent.
The civic administration had earlier proposed introduction of user charges to manage the increased expenditure of processing garbage generated in civic limits. It said that the civic body had to spent Rs 374.81 crore, Rs 402.97 crore and Rs 465.29 crore in 2015-16, 2016-17 and 2017-18 respectively, to scientifically dispose the waste generated in the city.
The PMC said it has only been able to get a revenue of Rs 193 crore from the existing charges for processing waste, and that’s why it wants to introduce user charges, to generate more revenue.
The civic administration said that the hike of 15 per cent in water charges has been proposed as per an earlier decision by the civic body, to increase the tax by 15 per cent every year till 2020-21, to raise funds for the 24×7 supply project in the city.
The tax proposal has to be approved by February 20, as per the provisions of the Maharashtra Municipal Corporation Act, and the civic Standing Committee has decided to take up the matter in a special meeting.