Property tax hike decision under review in Pune

PUNE: A massive hike proposed in property tax could be withdrawn as the standing committee has shown its willingness to reconsider the general body's decision taken in February to generate funds for 24x7 water supply.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 proposal has been tabled before us. It has been discussed with the elected members. The administration will be consulted before taking a final call. Now, it has been sent for a review. The property tax department will take a call on it and send it to us," said Balasaheb Bodke, standing committee chief.

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

In January this year, the PMC administration had proposed a hike of 50% in water charges, stating that the funds thus generated will be used for giving equitable water to all. The proposal also states that the commissioner will have the rights to increase it by 5% every year for the next 30 years. The standing committee in February made changes in the proposal and suggested 12% hike for 2016-17, followed by 15% hike every year till 2020-21 and powers to the municipal commissioner for increasing tax 5% 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% 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.

PMC officials say the administration will have to check the feasibility of changing the decision. The proposal has already been approved by the general body. The decision about changing the tax pattern again will have to be taken at the general body. After standing committe's approval, the proposal will be sent to the general body for a final stamp. Only then the proposal could be scraped.