PMC has to recover discount

PMC has to recover discount

PUNE: Following the strictures issued by CAG on Pune Municipal Corporation (PMC)’s largesse of offering 15 per cent tax discount to all 2.5 lakh property tax owners and following subsequent warning by the State government, the PMC has found itself in a tight spot. Following the orders by State government in October 2018, the PMC now has no other option but to recover close to Rs 100 crore paid as discount to 2.5 lakh property owners in the city since 2011-12. 

PMC property tax department Joint Municipal Commissioner Vilas Kanade said, “We have tabled a proposal in the Standing Committee regarding recovery of five per cent discount.”

“We will have to print special bills for recovery discount, mentioning the reason. We will have to take special efforts to convince property holders to repay the discount. We don’t have any other option,” he said. 

The PMC has now taken a decision to withdraw five per cent discount on general tax and has decided to collect this amount paid in discount with retrospective effect from 2011-12 to till date. There are around 2.50 lakh property owners, to whom discount of minimum Rs 2,000 to maximum Rs 5,000 was offered, depending upon the size of their property. The civic body will now have to issue fresh tax bill to recover this amount.

The General Body meeting had passed a proposal in 1970 to give 15 per cent discount on the general tax and Annual Rateable Value (ARV). However, there is a provision in Maharashtra Municipal Corporation Act that any local body can give a 10 per cent discount on general tax based on ARV of any land or building. The PMC took this decision to give 15 per cent discount instead of 10 per cent as mentioned in municipal act in 1970. 

The PMC offers 10 per cent discount on general tax, if annual rateable value of property is Rs 25,000 and 5 per cent discount on general tax.  Now, the State has taken a tough stance and held four former municipal commissioners and respective heads of property tax department responsible. Recently, the State government has issued instructions last year to recover 5 per cent discount retrospective from 2011-12 which was offered by corporation to property owners.

CHAIN OF EVENTS
- The Comptroller and Auditor General of India raised objection in 2012-13
- PMC was offering 15 discount instead of 10 per cent 
- State government’s Public Accounts Committee (PAC) raised objection on PMC’s decision. 
- Government demanded explanation from PMC.
- PMC referred to proposal passed by general body in 1970. 
- State government denied the same
- Fresh instruction to offer only 10 percent discount.

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