Pune Municipal Corporation (PMC) is now calculating the tax of properties based on the annual rateable value (ARV)
In Pune, the civil administration is researching more options available to calculate the property tax, under which few other factors will be considered. These factors include the area of the property, construction type, RR rate (ready reckoner rate) and age of the property.
Civil officials informed that they have contracted GIPE (Gokhle Institute of Politics and Economics) to conduct a detailed study of the proposal, which is based on 28 factors. The following steps will depend on the study outcome.
“The old properties are being charged minimal property tax, while new properties having same area as the old ones are paying much higher tax. In existing system, the scope is less to increase tax of old properties. The capital based valuation may help bring some uniformity in the taxation besides more categories can be added for imposing of property tax.” shared a source from PMC.
“We cannot elaborate on the exact structure of calculation of property tax under the capital based valuation as it requires a detailed study which will be taken up by GIPE. We will be providing them all the required data and statistics.” informed Ajit Deshmukh, PMC’s property tax department head.
Pune Municipal Corporation has a total of 53 divisions of civic limits. ARV has been finalised based on the RR rate of areas in the region.
“Under the present system, the properties are divided under the residential and commercial categories to calculate property tax. The proposed valuation system will study if the categorization of the commercial properties is possible based on their commercial use like a shop, hotel, restaurant or an office space.” another PMC official commented.