Indian Express 07.01.2010
Corporators cry foul over proposed hike
Property tax: They ask administration to target octroi evaders or defaulters for additional revenue
The Pune Municipal Corporation (PMC) is likely to turn a killjoy for property owners in the city limits as it has proposed a massive 22 per cent hike in the annual tax tariff, with an aim of raising an additional Rs 150 crore.
“The civic administration had suggested increasing the property tax last year itself. However, it was not approved. We have tabled the proposal this year,” PMC octroi chief Vilas Kanade said.
However, the move has not found favour with corporators, with many already coming out in the open against it. They have asked the administration to plug many loopholes in the existing revenue model, such as bringing untaxed properties in the city limits under the net and also crack down on octroi evasion, to bridge the revenue deficit.
NCP corporator and former mayor Rajlaxmi Bhosale said, “It is unfair to put an extra burden on citizens who are already reeling under the ill-effects of inflation and 22 per cent would not be a substantial hike. Such moves come up time and again because citizens are perhaps the easiest targets. The administration can instead concentrate on the octroi-evaders or tax defaulters.”
A similar view was expressed by BJP corporator Anil Shirole. “Increasing the property tax, that too by such a big percentage, is not desirable. I have time and again pointed out to the civic administration that instead of burdening the common citizens, there are other ways to increase the revenue, which they fail to consider.”
The civic body move comes at a time when the banks have been encouraging people to purchase houses, with lowered interest rates, even as the realty sector keeps looking for ways to come out of a slump triggered by an oversupply of built space.
HDFC Bank Pashan branch head Shrikant Naik said the raise in property tax might not completely put off genuine buyers, but only those who buy for investment purpose. “They might change their choice of area for buying property.”
Builder Rohit Gera of Gera Developers said there was a potential upward pressure on property prices, which was not good for the society. “Last year, due to the downturn, there was enough pressure on property buyers and builders. The cost price itself has gone up owing to several factors like rise in the stamp duty charges and so on.”
Real estate agent Girish Rasal said the move could impact the customers in two ways. On one hand, existing owners who have more than one property could be tempted to sell off their property while first-time buyers might keep their purchase option on hold. “Customers are already overcharged. Besides property tax, they also bear heavy society charges and maintenance charges. Owning a property could turn to be a nightmare if tax hike is implemented.”
Jefferson Sathik, sales head of a private firm, had been considering buying a second property, but now he said he might postpone the decision in case there is a decision of increase in the property tax rates
The proposal will come up before the standing committee next week. Committee chairman Nilesh Nikam said the proposal needed to be studied first.
