Even as the Pimpri-Chinchwad Municipal Corporation (PCMC) has decided to burden the citizens with an eight per cent property tax hike,the civic administration has been struggling to recover arrears which it says stands at Rs 52 crore in the last four years. Over 6,000 properties are in arrears,many of them said to be owing over Rs 50,000 each.
Justifying the hike in property tax to come into effect from April 1 Municipal Commissioner Asheesh Sharma said octroi is the main source of revenue for the PCMC. Of a budget of Rs 1,000 crore,PCMC octroi target is around Rs 700 crore. In case the state government abolishes octroi,the PCMC will be left with no source of revenue. That is why we are hiking property tax to ensure equitable tax ratio, he said.
On Saturday,Sharma warned that the civic body will attach the property of defaulters. We have confiscated certain properties in the past and we will do so in future as well if the property owners fail to pay their dues, he said.
The arrear amount of Rs 52 crore has been disputed by Shiv Sena corporator Seema Savle. She said the information she has received through an RTI application is that the citizens collectively owe Rs 230 crore by way of property tax to the PCMC. Among these,the bigwigs owe the PCMC nearly Rs 130 crore property tax for last four years. They are in default of over Rs 50,000 each, she said.
The PCMC,however,insists that only Rs 52 crore remains to be recovered from the citizens. PCMC assistant municipal commissioner Shahji Pawar said in 90 per cent of cases (of the 6,000),there is a dispute over the arrear amount. Either people have gone to court or in some cases the amount is not recoverable. For example,the state government has said the PCMC cannot recover property tax to the tune of Rs 50 crore, Sharma said.
Sharma said the PCMC had a target of Rs 89 crore this fiscal year. We are going to cross this target. We will reach a figure of Rs 100 crore, he said. Savle alleged that PCMC in four years has been able to recover only 57 per cent of the tax while 43 per cent remained in arrears. PCMC has decided to increase the tax but failed to recover property tax. If it recovers the pending amount,it wont be required to hike the tax, Savle said.