Pune: The Civic Property Tax Department’s proposal to hike the property tax has been rejected by the standing committee of Pimpri Chinchwad Municipal Corporation (PCMC) during its meeting on 5th February. The proposal for increase of octroi tax has also been postponed. However a 10% hike in signage and license fees for 2013-14 has been approved.
The Civic Property Tax Department had proposed a tax hike of 4-13% for 2013-14. If the tax hike would have been approved the property tax department would have collected an additional Rs 45.5 crore in 2013-14.
Except for Mumbai, the state government has decided to abolish octroi in all other municipal corporations. It will be replaced with local body tax. No such directive has yet been received in Pune. The PCMC Standing committee chairman Jagdish Shetty said that the change in octroi tax will only be approved with the permission of the state government. As for the signage and license fees, the committee has approved a hike of only 10% against the proposal of a 20% hike by the signage and license department.
The PCMC standing committee is against the property tax hike as the demolition of various illegal constructions by the civic body has already caused a lot of inconvenience to citizens.
The final decision about proposals for property tax, octroi rates and signage and license fees depends on the approval of the civic general body.