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Taxation

Property tax sop for retired soldiers draws praise

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Indian Express 19.11.2009

Property tax sop for retired soldiers draws praise

PCMC committee says civic chief would invoke special powers to approve initiative

The Pimpri-Chinchwad Municipal Corporation has decided to provide 100 per cent concession in property tax to retired soldiers of the Indian armed forces — a move that has drawn praise from all quarters. Though the PCMC standing committee on Tuesday took the decision, it will first require approval from the general body meeting and finally the state government nod. Civic activists said PCMC should implement the decision without waiting for state government approval as it involves honouring our soldiers who contributed their might for the nation.

The PCMC administration had proposed that 50 per cent concession should be given to those retired soldiers who hold properties up to 1,500 square feet. However, the standing committee decided to grant cent per cent concession to the retired soldiers. Standing committee chairman Dnyaneshwar Bhalerao said, “This is just a small step for soldiers who guard our lives and our nation’s borders. Whatever we do for them is just a tip of the iceberg. The soldiers make the supreme sacrifice for the nation and they deserve all our support,” he said. As to why the same facility was not extended to serving soldiers, Bhalerao said that is because serving soldiers get salaries and all other benefits which are not applicable to the retired soldiers.

PCMC assistant municipal commissioner (tax department) Shahaji Pawar said such a plan already exists in Thane. “We have spoken to the officials in Thane Municipal Corporation and they have confirmed that their civic body had approved the plan and sent it to the state government for approval,” he said. Another assistant municipal commissioner Sudhakar Deshmukh said the administration had proposed 50 per cent property tax rebate, but the standing committee decided on cent per cent. “Now the proposal will be placed before the general body. After the GB gives its sanction, it will have to be okayed by the state government before approval.”

Welcoming the first step, District Army Welfare officer Col S Karazghi said,”But the implementation of the plan has not come into reality so far. This happened in case of Pune Municipal Corporation which had approved the concession plan for soldiers and is still awaiting the state government nod.” PCMC standing committee chief Bhalerao said they were determined to implement the scheme. “We will not await for approval from the state government. The municipal commissioner can invoke special powers vested in him. We will impress upon the commissioner to do so in the larger interest of our soldiers,” Bhalerao said.

Pawar said the criteria for retired soldiers availing of the benefit of the scheme includes residential proof of Pimpri-Chinchwad and pension card of the central government. Hailing PCMC’s move, D G Baliga, a retired Air Force personnel from Pimpri, said the decision will especially benefit hundreds of retired foot soldiers staying in Pimpri-Chinchwad. “Every defence personnel who is on pension and especially the foot soldiers and their families will benefit a lot. The PCMC should go ahead and implement the decision,” said Baliga who is a resident of Pimpri-Chinchwad for nearly 30 years.

Activist-turned-corporator Maruti Bhapkar, who generally is critical of all standing committee decisions, said, “I welcome the decision. Sometimes the standing committee takes appropriate decision. Now, the commissioner should invoke his powers to provide full concession to retired soldiers,” he said.

Municipal Commissioner Asheesh Sharma, who is on leave, was not available for comment.

Last Updated on Thursday, 19 November 2009 11:31
 

Self-occupied properties: tax may shoot up, rebate to go

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Indian Express 18.11.2009

Self-occupied properties: tax may shoot up, rebate to go

Around 2.8 lakh citizens who have ‘self-occupied’ residential property within Pune Municipal Corporation (PMC) limits who had been enjoying 40 per cent concession in property tax may have to pay more from the next financial year. The 38-year-old scheme of giving 40 per cent concession in the annual ratable value of the property— PMC is the only civic body in the state providing such benefits—¿ is on its way out.

If a citizen has been paying Rs 10,000 as property tax, he will have to pay approximately Rs 3,000 more once the scheme is withdrawn.

“The scheme of 40 per cent concession was introduced in 1971 as a relief for citizens hit by the Panshet dam tragedy. There is no reason to continue with the concession now,” said Vilas Kanade, PMC Tax Assessment and Collection Officer.

The civic body had started implementing the scheme after the state government issued a notification.

Therefore, the civic administration will now seek approval of the legal committee for the proposal to urge the government to issue a notification withdrawing the scheme. The civic administration has also proposed that the additional benefit of 15 per cent standard deduction in property tax considering the maintenance and repairs of properties should be reduced to 10 per cent.

The proposal would be sent to the standing committee and the general body after the go ahead from the legal committee.

There are around 6.35 lakh properties in the PMC jurisdiction of which 3.5 lakh are residential. According to the tentative figures, almost 80 per cent of the properties are in the self-occupied category. Residential properties contribute 50 per cent revenue to the PMC as property tax while 45 per cent comes from commercial properties and the rest from the government-owned properties.

The civic body had a revenue generation of Rs 362 crore from property tax in 2008-09 — it was Rs 262 crore in 2007-08 against estimated Rs 450 crore for 2009-10. “We do not know the exact increase in revenue from the property tax if the concession is withdrawn,” a civic official said.

A door-to-door survey needs to be undertaken to ascertain the number of self-occupied properties are actually benefiting from the waiver, he added. There has been a substantial increase in properties in the PMC jurisdiction in the last few years. Around 48,000 new properties were registered in 2008-09 against 33,000 in 2007-08.

Last Updated on Wednesday, 18 November 2009 11:42
 

BMC looks for new taxes to increase revenue

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Hindustan Times 18.11.2009

BMC looks for new taxes to increase revenue

The civic body wants to battle its cash crunch and bolster its resources by introducing new taxes.

The Brihanmumbai Municipal Corporation (BMC) earns its revenue from octroi, property tax, development charges, water and sewerage charges and education cess tax. The BMC believes these taxes have reached a saturation point and cannot be stretched further.

The BMC’s accounts department has sent out letters to all the head of the departments asking them to study possibilities of new taxes.

Chief Accountant Ram Dhas said replies were expected in a fortnight.

“We have asked them to find out from other corporations in the country if they levy any other taxes which the BMC currently doesn’t,” said a senior civic officer, requesting anonymity because he is not authorised to speak to the media.

Acting Municipal Commissioner RA Rajeev said, “Right now there is no plan to increase the taxes. But the accounts department is exploring the possibilities of developing new taxes.”

The main reason for the dip in revenue is the 10 per cent drop in octroi collections due to the economic slowdown. The octroi department is the prime revenue-generating department for the BMC and contributes one fifth of the BMC’s annual budget of Rs 19,000 crore.

The BMC last saw a cash crunch from 1999 to 2001. Despite the crunch, it is still the country’ richest civic body.

Applying the sixth pay commission has also increased the civic body’s revenue expenditure by Rs 1,800 crore.

The BMC is also writing to the Centre to give them subsidies in custom duties and value added tax (VAT) on imported equipment like fire fighting machinery and machines for civic hospitals.

The corporation hopes that the shift in calculation of property tax from rateable value [on rental value of property] to capital value [on market rates] will increase the revenue from property tax by 10 per cent.

Last Updated on Wednesday, 18 November 2009 11:13
 


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