Pune: PMC Proposes 10% Property Tax Hike, Decision Pending Before Standing Committee

Pune, 31st January 2026: The Pune Municipal Corporation (PMC) has tabled a proposal to impose a blanket 10 percent hike in property tax, placing it before the Standing Committee at the last minute. The meeting was adjourned following the demise of Deputy Chief Minister Ajit Pawar, and a decision on the proposal is now expected on Monday, February 2, by the Municipal Commissioner.

As per statutory timelines, the PMC must take a call on whether to revise property tax rates before February 20. This has sparked public attention over whether the newly constituted Standing Committee will decide the issue, or if the Municipal Commissioner will approve the hike in the interim.

The last property tax revision in Pune was carried out nine years ago. Since then, the civic body has taken up several large-scale infrastructure projects, while salary and establishment expenses have increased significantly. At the same time, revenue from various sources has declined. Citing these factors, the administration has proposed the 10 percent hike, estimating that it could generate an additional ₹300 crore in annual revenue.

Although the proposal has been introduced in the Standing Committee, final approval must come from the PMC’s General Body before February 20. However, the new municipal house has not yet been formally constituted. A special meeting has been scheduled for February 9 to complete this process. After that, the February session of the General Body will need to be held before the 20th for the property tax hike to be cleared.

While the administration is firm on increasing revenue, questions are being raised about whether the BJP, which recently secured a clear majority and single-party control in the civic body, will move quickly to approve a tax hike that directly impacts citizens.

Former Leader of the Opposition Ujjwal Keskar, along with Suhas Kulkarni and former corporator Prashant Badhe, have opposed the proposal, urging the PMC not to burden honest taxpayers with higher taxes. They said that while the corporation’s revenue must increase, a tax hike is not the only solution. Instead, the focus should be on fixing flaws in tax assessment and collection systems. They pointed out that last year, against a target of ₹2,847 crore, the PMC managed to collect only about ₹2,200–2,300 crore.

According to them, significant revenue is being lost because many properties used for commercial purposes are either under-assessed or not taxed properly. Simplifying the tax assessment process, reducing unnecessary approval layers, and strengthening inspection mechanisms for commercial usage could generate hundreds of crores in additional revenue without raising tax rates.

With the February 20 deadline approaching, the final decision on the 10 percent property tax hike is expected to have major financial and political implications for the Pune Municipal Corporation and its residents.