Tables proposal to increase general taxes by 4% and administrative charges by 5%; 75% revenue comes from octroi.
The Pimpri Chinchwad Municipal Corporation (PCMC) has proposed a 4% hike in general taxes, including property tax, for the next financial year of 2011-2012.
The civic administration hopes to generate over Rs4 crore as revenue per year. In addition to this, the civic administration has also proposed a 5% increase in administrative charges.
The PCMC commissioner, Ashish Sharma, tabled the proposal before the standing committee, which is set to meet on Tuesday.
If the proposal is cleared, the general taxes will increase from 13% to 17%, the civic administrative charge rates will increase from 5% to 10% and the transfer fee will increase from 1% to 5%.
No changes have been proposed in fire tax, cleanliness tax and
education tax.
The civic administration claimed that it had made the study of the taxes of other municipal corporations of Pune, Mumbai, Kolhapur and Sambhajinagar before proposing the tax hike in PCMC.
It found that as compared to other municipal corporations, PCMC’s property tax and common taxes were low and the PCMC could generate more funds by proposing a moderate tax hike.
The PCMC generates maximum revenue from octroi, as much as 75% of its revenue comes from the octroi department, and 5% revenue from property taxes. All the 2.98 lakh property owners will be affected by the proposed tax hike.
While presenting the proposal, the civic administration said that the PCMC had received Rs790 crore as funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
While providing the funds, the JNNURM authority had laid the condition to increase the revenue generated from various taxes. Secondly, the tax hike had been proposed due to the increasing need for funds in various departments.
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