A standing committee of Pune Municipal Corporation- PMC has postponed the decision on proposed reduction in property tax discount.
The property owners were enjoying a 10% discount in property tax if paid before May 31. As this has caused the loss of revenue to the Pune Municipal Corporation (PMC), it suggested revising the discount rate to 5%.
However as the decision on this suggestion is postponed by the standing committee, the property owners may be able to gain 10% discount if they pay the property tax before the June-1.
Property tax is one of the main sources of revenue for PMC. By providing 10% discounts, the civic body loses a lot of money. This prompted them to cut the discount rate by half through which the civic body will receive more revenue.
The standing committee of the PMC has postponed their decision for two months. It seems that the new decision will be taken only after this May. And if so then the property owners who pay the tax by May-31, will be getting the 10% benefit.
Property tax is levied on all properties which fall inside the circle of PMC. This includes both movable and immovable properties. PMC decides the property tax on the basis of the value of the property.
While speaking to the media persons after the standing committee meeting, its chairman VishalTambe disclosed that the decision will be taken only after two months.
The collection of property tax for the year 2013-14 has been started already. The postponement of new decision will enable the property holders to pay the bill now and gain the tax benefits at 10%.
It is estimated that PMC is losing crores of rupees in the form of tax discount. So by reducing the discount rates, the civic body expects to increase their revenue. However PMC may not gain any additional revenue this year as the committee has postponed its decision.