Pune municipal corporation extends property tax rebate till June 30

Propertypistol

The pandemic has had a crippling effect on everybody, including the government. Since the real estate market was also knocked off course, the civic administration has struggled to keep its coffers from drying up.

Last year, when tax numbers fell from the usual Rs 380 crore to Rs 150 crore because of the floods and COVID-19, the PMC decided to extend the last date to avail property tax benefits from the usual May 31 to June 30. Then in October, an amnesty amount of 80% relief on penalty was introduced, which carried through the months, 75 % until December 31 and 70% until January 26, 2020. The amnesty scheme is not a new idea; it has been done before, back in 2016 and 2018, when taxes were too much overdue.

 The PMC standing chairman, Hermant Rasnane, said, “The PMC had introduced a special scheme of 15% discount to those who have paid tax diligently. The deadline for this scheme was May 31. It has now been extended by a month,”

The rebate helps the homeowners avoid much of the penalty amount, so they will be motivated to pay under the deadline. The move has certainly proved fruitful because the PMC has managed to collect over Rs 770 crore from 5.5 lakh properties as of June 2, 2021, in just two months, not to mention Rs 546 crore of that amount was earned in May alone.

As per the civic records, the net tax earned in a financial year is Rs 1400 crore that too from 10.5 lakh properties, so there is a way to go before hitting the target, but this is a good start.

One thing is for sure; the PMC is undoubtedly doing better than the same time last year, considering that property tax is their biggest source of income.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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