PMC rejects proposal to charge yearly penalty

ST Correspondent
Sunday, 17 June 2018

The PMC administration has rejected NCP corporator Bhaiyasaheb Jadhav’s proposal to stop charging monthly penalty on property tax defaulters and charge it on a yearly basis instead. The PMC levies a 2 per cent interest on the property tax amount as penalty for missing the deadline. 

Pune: The PMC administration has rejected NCP corporator Bhaiyasaheb Jadhav’s proposal to stop charging monthly penalty on property tax defaulters and charge it on a yearly basis instead. The PMC levies a 2 per cent interest on the property tax amount as penalty for missing the deadline. 

While Jadhav argued that the proposal would bring relief to taxpayers, the administration contended that it would cause a loss of revenue.  The Standing Committee had earlier sent the proposal to the PMC’s Property Tax Department to check its viability, but the department has given a negative opinion. 

According to the department’s statistics, the PMC has calculated Rs 1,300 crore as revenue from penalties for the period 2010 to 2018. Till date, the PMC has collected Rs 311 crore since 2010, when the penalty was introduced.

Jadhav said, “It is absolutely injustice. If we calculate the interest rate at 2 per cent per month, it goes to more than 20 per cent a year. It is not practical. Another thing is the compounded interest, which is putting an additional burden on taxpayers. This is the reason people don’t come forward and pay the penalty.”

The PMC distributes property tax bills in April and the last date of paying the tax is May 31. There are 8.3 lakh taxable properties in Pune, of which 1 lakh are commercial. The PMC has set a target of Rs 1,862 crore for the current fiscal i.e. 2018-2019, from property tax. The target for the last fiscal was Rs 1,200, which the PMC failed to meet.

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