Pune Municipal Corporation’s Property Tax Revenue Dwindles

After remarkable success in recovery of property tax at the beginning of the financial year 2010-11, the Pune Municipal Corporation (PMC) has recorded a sudden dip in tax collection. The reason cited is shortage of staff in the property tax department.
According to sources, the department had collected Rs198 crore in April and May this fiscal, thanks to the 10% concession provided to early tax payers. However, in November the collection went down to Rs14.71 crore.
The figure was dismally low as compared to the collection during the same month in the financial year 2009-10 (Rs31.98 crore), 2008-09 (Rs27.94 crore) and 2007-08 (Rs25.9 crore). In 2006 -07, the department had collected just Rs14.11 crore.
The total collection till November this fiscal is about Rs350 crore.
Sources said that around 48% property holders paid their tax in the first two months of the current financial year. Those were the regular tax payers. However, the PMC is finding it difficult to collect taxes from the remaining property owners due to lack of manpower.
After the success of the 10% concession scheme, it was expected that the civic administration would intensify its drive to recover tax, but last month’s dismal figure has raised doubts about the PMC’s seriousness in achieving the set target of Rs606 crore.
The total property tax collected in 2008-09 was Rs355.41 crore while in 2009-10 it was Rs364.22 crore.