Pune: The Pune Municipal Corporation (PMC) has witnessed a substantial surge in property tax revenue during the first two months of the fiscal year, marking a significant increase compared to the same period last year, recent data has revealed.
Between April 1 and May 31, the PMC recorded a remarkable rise in property tax collection, totalling Rs 1,068 crore, a substantial leap from the Rs 200 crore garnered during the corresponding period in the previous fiscal year. This surge underscores a robust performance in revenue generation, attributed in part to the 5-10% discount offered to early payers. Officials from the PMC’s property tax department cited distribution issues with bills as a contributing factor to the decline in collection last year. To accommodate resident demands for extended payment deadlines, the PMC has extended the discounted payment window until June 15, facilitating further revenue inflow.
With property tax constituting a primary revenue stream for the civic body, this surge in collection bodes well for meeting budgetary targets. Notably, the PMC’s budget for the fiscal year 2024-25 has been augmented by Rs 2,086 crore, reaching Rs 11,061 crore compared to Rs 9,515 crore in the preceding fiscal year.
A senior PMC official emphasized that the robust revenue performance in the initial months sets a positive momentum towards achieving overall income targets for the fiscal year. However, challenges such as recovery from merged areas and defaulting property owners persist, necessitating strategic measures for sustained revenue growth. Despite efforts to incentivize early payment and streamline collection processes, civic activists have urged the PMC to prioritize direct recovery over amnesty schemes. Concerns have been raised regarding the significant outstanding dues from over 1,700 property owners, collectively amounting to Rs 5,000 crore.
In response, the PMC has indicated a willingness to resort to property auctions as a last resort to recover dues from defaulters, underscoring the importance of stringent enforcement measures to ensure fiscal discipline and resource optimization. As the PMC navigates the complexities of revenue management, concerted efforts towards enhancing transparency, accountability, and compliance will be pivotal in sustaining financial stability and fostering urban development in Pune.
