Tax reforms planned by the civic administration for 2011-12 is likely to burden the citizens. The civic administration has proposed an increase in the property tax revenue by withdrawing the 40 per cent concession given to owner-occupied residential properties. There are 5,46,122 residential properties under the Pune Municipal Corporation’s purview.
The civic chief has admitted that the annual civic budget of Rs 3,196.12 crore for 2010-2011 is in deficit and has suggested that the civic body opt for clause 104 of the Bombay Provincial Municipal Corporation (BPMC) Act. This clause enables the municipal body to cut the expenses approved for the financial year, increase civic taxes or implement supplementary taxes.
In another proposal, a hike in octroi for essential commodities, including food grain and fuel, has been suggested.
In separate proposals on property tax and octroi hike which will be tabled next week to the standing committee, municipal commissioner Mahesh Zagade has said, “The PMC limits have expanded in the last few years and the population is on the rise. The PMC needs funds for development and improving the basic infrastructure like water supply, roads, sewage etc. Under the memorandum of understanding with the central government, the PMC has promised to carry out reforms and elimination of exemptions to citizens. If the exemptions in tax continue, the PMC may not get funds from the central government under Jawaharlal Nehru National Urban Renewal Mission.”
Read more- The Times of India
