The Gokhale Institute of Politics and Economics has signed an agreement with the Pune Municipal Corporation, the municipal body of Pune city to research the genesis, current state, revenue flow, and methodology for calculation of property tax in the city.
Property tax is not merely a part of the revenue mix for a local governance body in India, but the top contributor to any municipal body’s own revenue in India. Pune is no exception. Rather, Pune is one of the most vibrant real estate markets in the country with property rates and rentals featuring among the top-five regions in the country.
The study will primarily focus on identifying the problems associated with the existing property tax model. In the current scheme of things, property tax is calculated on the basis of the value of rent being paid for the property at any point in time. The study will also provide a framework for a smooth transition from rental-value-based property tax to capital-value-based property tax method.
Vikram Kumar, Commissioner at the Pune Municipal Corporation, Ajit Ranade, Vice-Chancellor at the Gokhale Institute, Prabhash Rath, Registrar, Abhay Pethe, special advisor to VC, Kunal Khemnar, Additional Commissioner, PMC, and Ravindra Dhaware were present at the document signing. The project will take four months to complete.
Such a change is expected to bring transparency, equitable levy of tax, and efficiency in property tax collection in the city. This will also improve digital governance and make the processes simpler for property taxpayers, namely the citizens of Pune.