Concerns are brewing over a substantial offer regarding property tax, as the standing committee has displayed interest in reconsidering a decision made by the general body in February aimed at establishing funds for continuous 24x7 water supplies.
Balasaheb Bodke, the chief of the standing committee, remarked, “The proposal has been presented to us. The administration will be called in before a final decision is rendered. For now, it is under review. The property tax department will evaluate the proposition and get back to us.”
In February, the general body approved a 12% increase in water tax, integrated within property tax, for the fiscal year 2016-2017. Additionally, a plan to escalate this tax by 15% each financial year from that time through 2020-2021 was laid out. Several political factions, notably Congress, Maharashtra Navnirman Sena, and Shiv Sena, opposed this rise, yet the ruling Nationalist Congress Party, with backing from the Bhartiya Janta Party, succeeded in passing the proposal.
In January 2016, the Pune Municipal Corporation (PMC) administration had proposed a significant 50% surge in water charges, explaining that the generated funds would be utilized for ensuring equitable access to water for all residents. Furthermore, the proposal empowered the commissioner to increase this charge by an additional 5% over the next three decades. During the committee meetings in February, amendments were made to this proposal, endorsing a 12% increase for the designated year, 2016-2017, followed by a projected 15% increment each subsequent year until 2020-2021, along with granting the municipality commissioner the authority to impose an annual 5% tax increase until 2047.
Nonetheless, the general body proposed further alterations, rejecting the civic administration's authority to elevate the tax by 5% each year indefinitely until 2047 while endorsing other provisions.
Officials at PMC have indicated that the administration must assess the feasibility of revoking the previous decision. Although the general body has already accepted the original offer, any alterations regarding the tax strategy will need to be revisited by the governing body. Once the standing committee approves any revisions, the proposal will then proceed to the general body for final ratification, at which point the offer could be definitively rescinded.