Pune administration says property tax exemption for small houses will cause Rs 255-core revenue loss, proposes 10% hike

In their election manifestos for the Pune Municipal Corporation polls, political parties had promised property tax exemption for houses of an area less than 500 sq ft.

2 min readPuneFeb 2, 2026 03:34 PM IST

The BJP had in its manifesto for the PMC election promised a property tax exemption for all residential properties measuring less than 500 sq ft (File Photo).

The Pune civic administration has proposed a 10 per cent property tax hike for the next financial year, expecting a revenue loss of around Rs 255 crore due to the election promise of full property tax exemption for homes under 500 sq ft.

The civic budget for 2026-27 will be presented soon and will see a natural increase in expenditure to meet the city’s demands. Revenue collection too has to increase to meet the expenditure.

“All political parties in their election manifestos had promised property tax exemption for residential properties of an area less than 500 sq ft. Thus, it is likely that the decision will be taken unanimously by the elected body,” said Additional Municipal Commissioner Prithviraj B P.

Prithviraj said the civic administration had studied the situation that would arise if the elected body decided to implement the BJP’s election promise. “There are a total of 12,69,163 residential properties in the jurisdiction of Pune Municipal Corporation (PMC), of which 4,29,245 have an area less than 500 sq ft. If the tax exemption is given for such flats, revenue from property tax will reduce by Rs 255.59 crore,” he said.

In a proposal tabled in the standing committee, Municipal Commissioner Naval Kishore Ram proposed a hike in property tax by 10 per cent, stating that the previous hike in tax rates came almost eight years ago, while the civic body’s expenditure had increased consistently.

There are 14,92,803 registered properties in the PMC limits, with a property tax revenue target of Rs 2,556.15 crore set. Among these properties, there are 12,69,163 residential properties, 1,67,934 non-residential properties, 30,675 open plots, and 25,031 mixed-use properties.

If the tax exemption for all properties with an area of less than 500 sq ft is applied, 5,24,822 properties will be eligible for the benefit and revenue collection will decrease by Rs 406.11 crore.

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“The elected body is likely to keep the tax exemption for residential properties,” said a civic official. Meanwhile, the civic administration is exploring the use of technology, including artificial intelligence, to identify unassessed properties and change-of-use properties.

Ajay Jadhav

Ajay Jadhav is an Assistant Editor at The Indian Express, Pune. With over 22 years of experience in the industry, he is a highly specialized journalist whose work focuses on the intersection of urban infrastructure, governance, and sustainability. Professional Background Role: As Assistant Editor, he plays a key role in the editorial direction of the Pune bureau, specializing in urban policy and its direct impact on citizens. Education: He holds a Master’s degree in Communication and Journalism from Savitribai Phule Pune University and a PG Diploma in Corporate Social Responsibility (CSR). He also studied at the prestigious Fergusson College. Impactful Reporting: He is credited with research-based articles on conservancy staff (waste workers) that influenced national policy for better working conditions. He is also known for exposing the contrast between high-end infrastructure (like helipads for leaders) and the lack of basic amenities like schools in their home districts. Personal Interests: An avid trekker and sports enthusiast, his personal interest in the outdoors often informs his reporting on environmental protection and sustainable development. Recent Notable Articles (December 2025) His reporting in late 2025 has been dominated by the upcoming January 2026 Civic Polls in Pune and Pimpri-Chinchwad, and the city's infrastructure boom: 1. Political Analysis (Civic Elections 2026) "Not friendly but a bitter fight lies ahead between BJP and NCP for PMC, PCMC" (Dec 22, 2025): A detailed look at the intense rivalry between the Mahayuti partners as they prepare for the January 15 municipal elections. "Pune civic polls: Big blow to NCP, NCP(SP) as leaders switch to BJP" (Dec 20, 2025): Reporting on high-profile poaching and party-hopping ahead of the elections. "Ajit Pawar's NCP continues domination in Pune, wins 10 of 17 local bodies" (Dec 21, 2025): Analyzing the results of the local self-government body elections as a precursor to the main civic polls. 2. Infrastructure & Urban Development "Looking Ahead at 2026: Pune to see inauguration of much-awaited Hinjewadi to Shivajinagar metro route" (Dec 22, 2025): An "outlook" piece on the critical Metro Line 3 project expected to finish by March 2026. "Building Pune: PMC to construct double-decker bridge over Mula-Mutha River" (Dec 18, 2025): Detailing a major project aimed at easing traffic between Hadapsar and Kharadi. "Condition of highway from Pune to Kolhapur to improve in a year: Gadkari" (Dec 4, 2025): Reporting on the Union Minister’s assurances regarding one of the state's most critical transport corridors. 3. Civic Governance & Environment "Install sensors, LED indicators at construction sites within 15 days: PMC to builders" (Dec 16, 2025): A follow-up to the "Breathless Pune" series, reporting on new mandates for builders to monitor air quality in real-time. "Errors in electoral rolls: PMC corrects data of 92,466 voters" (Dec 16, 2025): Tracking the administrative efforts to clean up the voter lists before the 2026 elections. Signature Style Ajay Jadhav is known for accountability journalism. His work often bridges the gap between high-level policy and the "ground zero" reality of Pune's residents. He is particularly focused on Sustainable Development, ensuring that as Pune grows into a "Bharat Mandapam" style destination (referring to his report on the Lohegaon project), its environmental and social safeguards remain intact. X (Twitter): @ajay_khape ... Read More

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