Property Tax Hike Decision Under Review

Pune: A massive hike proposed in property tax could be withdrawn as the standing committee has shown its willingness to reconsider the general body’s decision taken in February to generate funds for 24x7 water supply.

The general body in February approved a 12 percent hike in water tax, which is a part of property tax for the 2016-17 fiscal. There is also a provision of 15 percent in every financial year thereafter till 2020-21. Congress, MNS and Shiv Sena had opposed the move but the ruling NCP, with the support of BJP, managed to clear the proposal.

As per EXIN Times, in January this year, The PMC administration had proposed a hike of 50 percent in water charges. The proposal also states that the commissioner will have the rights to increase it by five percent every year for the next 30 years. The standing committee in February made changes in the proposal and suggested a 12 percent hike for 2016-17, followed by 15 percent hike every year till 2020-21 and powers to the municipal commissioner for increasing tax by five percent annually till 2047.

The general body made more changes to the proposal. It rejected the provision of giving the civic administration the right to increase the tax by 5 percent every year till 2047, but approved other demands.

Now elected members have challenged the general body's decision too. “The proposal approved is not correct according to the law. Except the hike for 2016-17, the changes suggested from 2017-18 should not be implemented. The changes in the tax structure should be submitted to the standing committee,” stated the proposal.