The Times of India 19.01.2010
Proposal to hike taxes evokes sharp reactions
PUNE: Municipal commissioner Mahesh Zagade's proposed hike in octroi, water charges and other municipal taxes in the draft municipal budget of Rs 2910 has been opposed by political parties.
Zagade proposed a 22 per cent hike in various taxes including road and fire cess, as well as a doubling of water charge, in order to get funds to execute major developmental projects worth Rs 1,634 crore. Rates for octroi have also been hiked in the draft budget. The municipal commissioner said that if the proposed hike were rejected, the draft budget would face a deficit of Rs 377.87 crore which will directly affect capital works.
"We will strongly oppose any hike in water tax. Already people are reeling under the burden of a hike in electricity charges and inflation, said Aba Bagul, Congress leader in the PMC. "It is the primary responsibility of the municipal body to quench the thirst of the common people. The PMC has failed to fulfil this need in all parts of the city. How can they ask for more tax when people are not getting sufficient and clean water?" Bagul added that the Congress will discuss the 22 per cent hike at the party meeting and then decide on its stand. "We feel that there is a basic problem in the thinking of the civic administration. There are many administrative things that could be done to improve the revenue collection, but the civic administration is looking for easiest way by proposing a tax hike," said Bagul.
"We stand firm on opposition to any hike in tax," said Mukta Tilak, leader of the BJP in the PMC. "The civic administration should consider a plan to increase revenue collection by implementing efficient policies to collect property tax, octroi and other tax. Thousands of properties in the city are unassessed, there are loopholes in octroi collection. What measures have the administration taken to improve its efficiency? There is no point in hiking taxes when the civic administration has failed to perform its duties," she added.
Interestingly, in 2009-10 the general body of the PMC had approved the highest-ever budget of Rs 3,303.85 crore. The actual income of the civic body by December 2009, however, was just Rs 1,345.49 crore, of which Rs 1,157 crore has been utilised.
Ravindra Dhangekar, leader of the Maharashtra Navnirman Sena (MNS) said that his party would oppose any effort to impose a tax hike. "It seems that the civic administration is busy planning strategies to extract more and more money form Puneites. The civic administration has implemented the pay and park plan recently when the traffic is already in a mess and now without providing basic infrastructure like roads, footpaths and sufficient drinking water the administration wants to extract money from the people," he said.
Civic activist Vijay Kumbhar said that the civic administration should introspect before proposing a steep hike in the civic tax structure. "Simple steps like increasing the property tax net could yield expected revenue to the PMC. Civic organisations in Pune will make a presentation to the civic administration on how it could increase income side without imposing taxes," said Kumbhar.
Standing committee chairman Nilesh Nikam said that the standing committee had begun discussions on the municipal commissioner's budget. "We will discuss all the proposed hikes in detail and then decide on the same. All sides of the matter will be discussed comprehensively in a series of standing committee meetings and only then will the final budget be presented to the general body," said Nikam.
Zagade proposed a 22 per cent hike in various taxes including road and fire cess, as well as a doubling of water charge, in order to get funds to execute major developmental projects worth Rs 1,634 crore. Rates for octroi have also been hiked in the draft budget. The municipal commissioner said that if the proposed hike were rejected, the draft budget would face a deficit of Rs 377.87 crore which will directly affect capital works.
"We will strongly oppose any hike in water tax. Already people are reeling under the burden of a hike in electricity charges and inflation, said Aba Bagul, Congress leader in the PMC. "It is the primary responsibility of the municipal body to quench the thirst of the common people. The PMC has failed to fulfil this need in all parts of the city. How can they ask for more tax when people are not getting sufficient and clean water?" Bagul added that the Congress will discuss the 22 per cent hike at the party meeting and then decide on its stand. "We feel that there is a basic problem in the thinking of the civic administration. There are many administrative things that could be done to improve the revenue collection, but the civic administration is looking for easiest way by proposing a tax hike," said Bagul.
"We stand firm on opposition to any hike in tax," said Mukta Tilak, leader of the BJP in the PMC. "The civic administration should consider a plan to increase revenue collection by implementing efficient policies to collect property tax, octroi and other tax. Thousands of properties in the city are unassessed, there are loopholes in octroi collection. What measures have the administration taken to improve its efficiency? There is no point in hiking taxes when the civic administration has failed to perform its duties," she added.
Interestingly, in 2009-10 the general body of the PMC had approved the highest-ever budget of Rs 3,303.85 crore. The actual income of the civic body by December 2009, however, was just Rs 1,345.49 crore, of which Rs 1,157 crore has been utilised.
Ravindra Dhangekar, leader of the Maharashtra Navnirman Sena (MNS) said that his party would oppose any effort to impose a tax hike. "It seems that the civic administration is busy planning strategies to extract more and more money form Puneites. The civic administration has implemented the pay and park plan recently when the traffic is already in a mess and now without providing basic infrastructure like roads, footpaths and sufficient drinking water the administration wants to extract money from the people," he said.
Civic activist Vijay Kumbhar said that the civic administration should introspect before proposing a steep hike in the civic tax structure. "Simple steps like increasing the property tax net could yield expected revenue to the PMC. Civic organisations in Pune will make a presentation to the civic administration on how it could increase income side without imposing taxes," said Kumbhar.
Standing committee chairman Nilesh Nikam said that the standing committee had begun discussions on the municipal commissioner's budget. "We will discuss all the proposed hikes in detail and then decide on the same. All sides of the matter will be discussed comprehensively in a series of standing committee meetings and only then will the final budget be presented to the general body," said Nikam.
