Indian Express 06.01.2010
Civic body proposes hike in property tax
Struggling to balance its finances situation due to reduction in revenue collection and increase in expenditure in 2009-10, the civic administration on Tuesday proposed to hike the property tax by 22 per cent for the next financial year.
The reason being offered is that expenses on services has increased.
In a proposal tabled in the standing committee, it said its expenditure on water supply, sewage treatment and cleanliness has increased in the last year.
“To recover the increased expenditure there is a need to hike the property tax,” it said. There is a proposal to increase the tax on the entertainment institutions and the octroi rates as well.
The decision on the proposal will be taken in the special meeting of standing committee, said Nilesh Nikam, PMC chairman of standing committee.
Another civic administration proposal to withdraw the scheme of 40 per cent discount on property tax for the residents occupied by owner is still pending with the standing committee.
Meanwhile, the civic panel has decided to discuss with state Energy minister Ajit Pawar the matter of resolving the expenditure of Rs 72 crore incurred in replacing the overhead electricity cables with underground cables.
“The civic body had invested in ti considering that the state electricity board will pay for it later on,” Nikam said.
