Pune Property Tax Rebate Drive Ends with Rs 1,411 Crore Collection

Pune, 7th July 2025: The Pune Municipal Corporation (PMC) concluded its extended rebate period for residential property tax payments today, with 7,75,140 property owners contributing Rs 1,411 crore to the civic treasury by 7 pm. The rebate period, which offered a 5% to 10% discount on property tax, was initially set for 1st May to 30th June but was extended until July 7 due to server outages on the last day.

Despite the extension, 3,376 fewer citizens availed the rebate this year compared to last year, resulting in a shortfall in expected revenue for the PMC. Last year, 7,78,516 property owners paid Rs 1,415.65 crore, while this year the number dropped to 7,75,140, with total collections at Rs 1,411.01 crore.

The PMC typically offers the property tax rebate from 1st April to 31st May each year, but delays in bill preparation for newly merged villages and for those eligible for a 40% rebate led to a revised rebate window from 1st May to 30th June. Technical issues with the online payment system on the final day prompted the extension to 7th July.

Of particular note, 1,74,000 property owners from newly merged villages paid Rs 232 crore in property tax, even though the state government has yet to finalize the tax rates for these areas, and collections there remain partially suspended.

PMC officials have expressed concern over the decline in rebate availing citizens and the resulting financial impact. The administration is now investigating the reasons behind the reduced participation and is intensifying efforts to improve tax collection, including campaigns to recover arrears and initiatives to encourage timely payments. Officials warn that if arrears continue to rise and government rebates are not granted, property owners may face higher payments in the future.

In response to the challenges, the PMC is also exploring new technologies and digital solutions to streamline the tax payment process and reduce the likelihood of technical issues. The corporation is committed to enhancing transparency and communication with property owners to ensure a smoother and more efficient tax collection system in the future.