Pimpri: New property tax from April 1; ruling BJP opposes it, to approach state govt

Even as the civic administration of Pimpri-Chinchwad Municipal Corporation gets ready to implement new property tax rates on old properties constructed before 2005-2006, the ruling BJP has strongly opposed the move and has decided to approach the state government to get the proposal scrapped.

The PCMC administration has hiked property tax on as many as 2.5 lakh old residential properties and over 3 lakh non-residential properties in the industrial city of Pimpri-Chinchwad. Shravan Hardikar, who was the municipal commissioner until last month, had using his powers effected the hike in property tax on old properties. The new commissioner Rajesh Patil had stuck with the decision.

Expressing his party’s strong opposition, BJP House leader Namdeo Dhake told The Indian Express on Saturday, “We have strongly opposed the civic administration’s proposal to hike property tax. We have rejected the proposal in the civic standing committee and the civic general body meeting.”

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However, since the civic administration is determined to implement the plan, the BJP has decided to approach the state government. “We have rejected the move…If the administration still goes ahead by implementing the hike, we will have no option but to approach the state government to get the proposal cancelled,” he said.

PCMC deputy municipal commissioner Smita Zagade said the property tax on old residential properties have been hiked as there is a big difference between the per square feet rates and subsequent property tax calculated on old and new properties. “For instance, on old properties belonging to 1990-91, the per square feet rate applicable was only Rs 5.40 per square feet. However, if someone purchases properties today, the per square feet rate is Rs 29.94. We wanted to reduce the widening gap and have therefore increase the property tax on old properties,” said Zagade.

Zagade, however, claimed the hike in property rates of old residential properties are nominal. “Similarly, there is relief to new properties as the hike is paltry,” she said.

As per the new property tax hike plan, if an individual has a flat with 500 square feet purchased in 1990-91, the person would be paying Rs 2,800 property tax today. The rate has gone up from Rs 5.40 per square feet to Rs 11 per square feet. “So far, he was paying Rs 1,080. His property tax will be doubled,” said Zagade, adding that only the property tax in case of flat purchased in 1990-91 will be doubled while rest will have a much lower increase.

For a 500 square feet flat purchased in 1992-93, a family paid a property tax of Rs 1,328 annually. “From April 1, the family will have to pay Rs 2,260, an increase of Rs 900,” Zagade said.

Similarly, for a property purchased between 2002 to 2005, the property tax will go up from Rs 1,171 to 1,970. The rate for these three years will go up from Rs 8.64 to 12.58 per square feet.

For properties purchased between 2006 to 2020, which are considered new, the rate is Rs 17.18 to Rs 29.94 per square feet. The rate will go up to Rs 31.44. “The properties purchased between 2006 to 2020 will have an increase from Rs 180 to Rs 337,” Zagade said.

For old non-residential properties purchased between 1990-2005, such as commercial and residential properties, the hike will be between Rs 1,500 to Rs 3,500 annually. “Whereas for the new properties purchased between 2006 and 2020, the hike will be from Rs 700 to Rs 1,500,” Zagade said.

There are around 2.5 lakh old residential properties in Pimpri-Chinchwad and around 3 lakh commercial and residential properties

Zagade said the civic administration has decided to apply the new changes in property tax from April 1. “The municipal commissioner has used his discretion to hike the property tax. The administration does not the general body meeting or standing committee permission though the decision will be placed before them,” she said.