Pune Activists Protest 10% Property Tax Hike Amidst Political Promises

Published: February 02, 2026 | Category: Real Estate Pune
Pune Activists Protest 10% Property Tax Hike Amidst Political Promises

Pune: Even as political parties have promised a waiver on property tax for houses measuring up to 500 square feet, the Pune Municipal Corporation (PMC) administration has proposed a 10% hike in property tax for the next financial year to offset the expected revenue loss—a move that has drawn sharp opposition from civic activists.

Naval Kishore Ram, municipal commissioner, is currently preparing the PMC’s budget for 2026–27, which is expected to be presented after the elected representatives take charge of the civic body. The administration has already submitted its proposal for a 10% increase in property tax, which will be placed before the standing committee for a decision while finalising the budget.

Vivek Velenkar, a civic activist, criticised the proposal, alleging that the tax hike was an attempt to cover up administrative failure. “Only 1,667 property owners have outstanding dues amounting to ₹7,767 crore. Instead of recovering these arrears, the administration is burdening honest taxpayers with higher taxes,” he said.

Prithviraj BP, additional municipal commissioner, said the proposal was based on an assessment of the financial impact if the tax waiver promised during elections were to be implemented. According to the civic administration, Pune has 12,69,163 residential properties, of which 4.29 lakh measure below 500 square feet. “Exempting these properties from tax would result in a revenue burden of ₹255.59 crore,” he said.

The proposal is expected to trigger further debate once it comes up before the standing committee. Activists argue that the PMC should focus on improving tax collection efficiency and recovering outstanding dues before imposing additional burdens on taxpayers. The tension between the administration’s need for revenue and the public's demand for fair and transparent governance is likely to be a key point of discussion in the coming weeks.

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Frequently Asked Questions

1. What is the proposed increase in property tax in Pune?
The Pune Municipal Corporation (PMC) has proposed a 10% increase in property tax for the next financial year.
2. Why is the PMC proposing this increase?
The increase is proposed to offset the expected revenue loss due to the promised tax waiver for houses up to 500 square feet.
3. How many properties in Pune measure below 500 square feet?
There are 4.29 lakh properties in Pune that measure below 500 square feet.
4. What is the estimated revenue loss if the tax waiver is implemented?
The estimated revenue loss if the tax waiver is implemented is ₹255.59 crore.
5. What do civic activists suggest as an alternative to the tax hike?
Civic activists suggest that the PMC should focus on improving tax collection efficiency and recovering outstanding dues before imposing additional burdens on taxpayers.