Pune: Mahayuti Government Proposes Property Tax Amnesty Scheme Ahead of PMC Elections
With the Pune Municipal Corporation (PMC) elections on the horizon, the ruling Mahayuti government is pushing for a property tax amnesty scheme to attract voters and boost revenue collection.
Pune Municipal CorporationProperty Tax AmnestyPmc ElectionsMahayuti GovernmentCivic PollsReal Estate PuneNov 04, 2025
According to civic sources, the state government has directed the PMC administration to prepare a proposal for the scheme, which will soon be submitted for approval to the Municipal Commissioner. Discussions within the PMC suggest that the proposed scheme may be structured to benefit large commercial defaulters more than residential property owners, a departure from previous schemes.
At present, the total outstanding property tax dues for the PMC have crossed ₹13,000 crore, owed by nearly 5.5 lakh property owners. The principal demand is around ₹3,500–4,000 crore, but with a 2% monthly interest on delayed payments, the arrears continue to grow. The state government has also halted tax recovery in the newly merged villages under PMC limits, preventing the civic body from issuing bills in these areas. This has significantly contributed to the mounting arrears.
A few months ago, the state government had written to the PMC seeking its opinion on implementing an amnesty scheme. At that time, the civic body expressed reservations, warning that such a scheme would reduce its revenue and impact funding for development projects. Despite these concerns, the state government continues to push the corporation to roll out the plan.
With civic polls around the corner, the state is reportedly keen on launching the amnesty scheme to create goodwill among voters while also boosting revenue collection before the election code of conduct comes into effect. The proposal is currently being drafted, and efforts are on to get it approved as soon as possible.
Previously, amnesty schemes were limited to residential property owners. However, this time, large commercial defaulters may also be included to provide them relief, senior civic officials said. The proposal is expected to be tabled before the Municipal Commissioner for approval soon.
Earlier attempts to introduce such schemes were met with strong opposition from citizen groups and NGOs, who argued that amnesty programs reward habitual defaulters while penalizing honest taxpayers. Following the pandemic, the PMC had launched a similar amnesty in which around 2.1 lakh property owners cleared their dues. However, data shows that nearly 24,000 of these beneficiaries have defaulted again, accumulating ₹221 crore in pending property tax dues.
When contacted, Deputy Commissioner (Property Tax) Avinash Sakpal confirmed the ongoing discussions, stating, “There have been talks about introducing an amnesty scheme for defaulters, but no decision has been finalized yet. The final call will be taken by the Municipal Commissioner.”
Frequently Asked Questions
What is the property tax amnesty scheme proposed by the Mahayuti government?
The property tax amnesty scheme is a proposed initiative by the Mahayuti government to forgive or reduce property tax arrears for defaulters in Pune. This scheme is being considered to attract voter support and boost revenue collection before the PMC elections.
Why is the PMC hesitant about implementing the amnesty scheme?
The PMC has expressed concerns that the amnesty scheme could reduce its revenue and impact funding for development projects. They argue that such schemes reward habitual defaulters while penalizing honest taxpayers.
How much is the total outstanding property tax dues in Pune?
The total outstanding property tax dues in Pune have crossed ₹13,000 crore, owed by nearly 5.5 lakh property owners. The principal demand is around ₹3,500–4,000 crore, but with a 2% monthly interest on delayed payments, the arrears continue to grow.
What is the impact of the state government halting tax recovery in newly merged villages?
The state government's decision to halt tax recovery in newly merged villages under PMC limits has prevented the civic body from issuing bills in these areas, significantly contributing to the mounting arrears.
Who is Deputy Commissioner (Property Tax) Avinash Sakpal, and what did he say about the amnesty scheme?
Deputy Commissioner (Property Tax) Avinash Sakpal confirmed that there are ongoing discussions about introducing an amnesty scheme for defaulters, but no decision has been finalized yet. The final call will be taken by the Municipal Commissioner.
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