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PMC: Property Tax Collection Stuck at ₹1600 Crore, ₹2400 Crore Target in Jeopardy

Neelam Karale

Pune Municipal Corporation (PMC) is facing significant hurdles in meeting its property tax collection target for the financial year 2024-25, with its collection figure stuck at ₹1,600 crore due to a combination of insufficient manpower and the state government’s suspension of penalty recovery from 34 newly included villages.

Between April 1 and September 27, the Property Tax Department collected ₹1,659 crore, a figure that falls short of the ambitious budget target of ₹2,400 crore.

The PMC’s records show that 9,16,280 property owners have paid their taxes, totaling ₹1,659 crore. Among these payments, ₹990 crore was collected online, ₹482 crore via cheque, and ₹186 crore in cash.

However, a substantial number of 5,05,027 property owners have yet to pay, casting doubts on whether the target will be met.

The sluggish pace of tax collection has been attributed to various operational challenges, including the allocation of tax department staff to Assembly election duties and internal reassignments within the department.

Recovery Efforts

The beginning of the financial year coincided with Assembly elections, which saw many tax collection employees temporarily assigned to election-related work.

Following the elections, several staff members were reassigned to handle PT-3 applications, sidelining the department’s efforts to recover outstanding taxes.

The withdrawal of additional staff has further impacted the recovery process, leaving the PMC grappling with a slow pace of property tax collection.

Suspension of Penalty

One of the critical challenges facing the PMC is the ongoing suspension of penalty recovery from 34 newly incorporated villages, which alone accounts for nearly ₹12,000 crore in arrears.

In March, the state government directed the PMC to halt the collection of penalties on properties in these areas, where taxes had been raised threefold.

This suspension remains in effect, and many residents are resisting even regular tax payments, further complicating recovery efforts. The situation is exacerbated by political pressure on the administration due to the ongoing Assembly elections.

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