To stem losses in revenue collection through property tax, the Pune Municipal Corporation (PMC) has sought information from the Pune City Police on rental properties registered with it, so as to end the discount of 40 per cent in tax given to properties in the city.
Citing the floods in its jurisdiction, the PMC had been giving a discount of 40 per cent in property tax for properties that are occupied by the owner. However, the civic body has realised that many properties, despite being rented, are availing the discount, leading to revenue loss.
“We have sought a list of properties that are being rented and are registered with the city police as per the government rule. This would enable us to identify rented properties that are availing the discount for self-occupied properties. We will then end their discount,” said a PMC official.
The PMC has been pulled up by the state government for giving the discount, and has been directed to end the scheme, saying it is not in compliance with government rules. The PMC has stopped providing the discount to new properties, but is facing issues in doing so for older ones.
“The discount for self-occupied properties has been given for the last 50 years. The PMC is unable to decide from when the discount scheme should be cancelled. Also, the immediate withdrawal of the discount scheme will lead to public protest…,” said the PMC official, adding that the scheme would be cancelled for all properties only after clarification from the state government.