Civic chief proposes increase in property and water tax in Budget

ST CORRESPONDENT
Thursday, 17 January 2019

The civic body has proposed 12 per cent hike in the property tax along with 15 per cent water tax and user charges for garbage management on Wednesday on the eve of Pune Municipal Corporation (PMC) commissioner’s draft budget of 2019-20.

Pune: The civic body has proposed 12 per cent hike in the property tax along with 15 per cent water tax and user charges for garbage management on Wednesday on the eve of Pune Municipal Corporation (PMC) commissioner’s draft budget of 2019-20. The proposal has been tabled in the Standing Committee for approval. However, committee has reserved its decision on the hike and decided to hold a special meeting to take decision on the hike in tax.

In Wednesday’s Standing Committee meeting, Municipal Commissioner Saurabh Rao tabled a proposal of tax in hike at the last moment. He has proposed total 12 per cent hike in property tax (5 per cent in general tax, 5.5 water cess  and 1.5 per cent sewage tax) and 15 per cent water tax. Water tax is proposed for 24x7 water supply project. Besides that, the civic body wants to impose a user charge for garbage management based annual rateable value of property which is minimum Rs 50 to maximum Rs 500 per month. The user charge will be included in property tax bill. 

While speaking to media, Yogesh Mulik, Chairman of Standing Committee said, ”Municipal Commissioner Saurabh Rao tabled a tax hike proposal in a hurry in the Standing Committee. Hence, we have decided to hold a special Standing Committee meeting to decide on the tax hike.”
 
The PMC is expecting Rs 110 crore annually from 12 per cent property tax hike and  hopes to collect Rs 29 crore from 15 per cent water tax hike. In 2016-17, PMC had given approval for 24x7 water supply project and it has proposed water tax for 5 years and a General Body meeting had approved hike while sanctioning 24x7 water project. According that, this is 3rd year of hike in water tax.

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