Congress Tables Resolution Seeking Property Tax Exemption for Small Residential Properties in Pune

In a move aimed at cornering the ruling Bharatiya Janata Party (BJP) in the Pune civic body, the Indian National Congress has tabled a resolution seeking complete exemption from property tax for residential properties measuring less than 500 sq ft — a promise made by most major political parties, including the BJP, in their election manifestos. “The Pune civic body should provide relief to the poor and middle class from rising inflation by giving complete exemption in property tax for all residential properties less than 500 sq ft area,” said Chandusheth Kadam, Congress leader in the Pune Municipal Corporation (PMC). The resolution has been included in the agenda of the Standing Committee meeting scheduled for Thursday. This will be the first meeting after the constitution of the 16-member committee and the election of its chairperson following the formation of the elected body in the PMC. “We will discuss the resolution in the Standing Committee and send it for the opinion of the civic administration. We will also discuss it in the party meeting and take a decision which is best in the interest of citizens of Pune,” said Srinath Bhimale, who was elected chairperson of the PMC Standing Committee on Monday. Incidentally, the BJP, Congress and Nationalist Congress Party (NCP) had all promised complete exemption from property tax for residential properties with an area of less than 500 sq ft in their respective election manifestos. Last week, the PMC unanimously rejected a proposal by the civic administration to hike property tax, stating that revenue requirements could be met by tackling tax evasion. The administration had proposed a 10 per cent hike, citing the absence of a rate increase over the past eight years and rising expenditure following the expansion of PMC limits and the growing demand for civic facilities. According to the civic administration, granting a property tax exemption for residential properties below 500 sq ft would reduce revenue collection by Rs 255.59 crore. There are 12,69,163 residential properties within PMC limits, of which 4,29,245 measure less than 500 sq ft. “If the tax exemption is given for such flats, revenue from property tax will reduce by Rs 255.59 crore,” a civic officer said. In total, there are 14,92,803 registered properties — including residential and commercial — in the PMC jurisdiction, with a property tax revenue target of Rs 2,556.15 crore. These include 12,69,163 residential properties, 1,67,934 non-residential properties, 30,675 open plots and 25,031 mixed-use properties.