PMC Commissioner Shekhar Gaikwad had earlier said, “There are a large number of defaulters and they need to be integrated into the regular tax cycle. The amnesty scheme will be implemented till March 31…”. (File photo)

The Pune Municipal Corporation (PMC) is planning to roll out an amnesty scheme to encourage lakhs of property tax defaulters in the city to pay their taxes and shore up the civic body’s dwindling revenues. While the details of the scheme are yet to be finalised, it may not penalise defaulters or impose an interest if defaulters pay off their pending taxes.

“Elected representatives have tabled a resolution for the implementation of an amnesty scheme for property tax defaulters. It is awaiting the committee’s approval…,” said Vilas Kanade, joint municipal commissioner and in-charge of PMC’s Property Tax department.

Details of the scheme, however, are yet to be finalised.

PMC Commissioner Shekhar Gaikwad had earlier said, “There are a large number of defaulters and they need to be integrated into the regular tax cycle. The amnesty scheme will be implemented till March 31…”.

Most defaulters don’t pay the tax as they disagree with the PMC’s property tax calculations, and such issues can be resolved without unnecessary delay, said a civic officer.

Of the total 10.51 lakh properties registered in PMC limits, almost 3.37 lakh property owners have not paid the entire tax and owe the civic body nearly Rs 4,000 crore, which includes late payment fine of Rs 2,278 crore.

The PMC also hopes to generate more revenue through the proposed scheme. While it had set a revenue collection target of Rs 2,100 crore from property taxes for financial year 2019-20, the PMC has managed to earn only Rs 1,144 crore till end of December.

Earlier, the PMC had tried out the idea of sending a music band to recover dues from defaulters. The band use to beat drums outside the property in an effort to embarrass the owner into paying the pending dues. Last year, the PMC had even threatened to cut off water supply and seal off such properties, but even such warnings didn’t yield much result.

In another step to avoid financial losses due to the delay in getting new properties registered, the civic body will
use a software system that automatically registers any property that has been issued a completion certificate in the civic jurisdiction.