Tax on old properties hiked in Pimpri-Chinchwad come April 1

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At least 2.5 lakh old residential properties and more than 3 lakh non-residential properties in Pimpri-Chinchwad will have to pay more property tax from April 1. The decision to hike property tax will not meet ratification from the civic general body or the standing committee, civic officials said Tuesday.

Deputy Municipal Commissioner Smita Zagade said property tax on old residential properties has been hiked as there is a big difference between per square feet rates and subsequent property tax calculated on old and new properties.

“For instance, on old properties from 1990-91, the per square feet rate applicable was only Rs 5.40 per square feet. However, if someone purchases properties today, the per square feet rate is Rs 29.94. We wanted to reduce the widening gap and have increased the property tax on old properties,” said Zagade.

But Zagade said the hike in rate of old residential properties is nominal. “Similarly, there is relief to new properties as the hike is paltry,” she said.

According to the new property tax hike plan, if an individual has a 500 square feet flat that was purchased in 1990-91, the property tax will now be Rs 2,800 per year. The rate has gone up from Rs 5.40 per square feet to Rs 11 per square feet. “So far, he was paying Rs, 1080.

His property tax will be doubled,” said Zagade, adding that only the property tax in case of a flat purchased in 1990-91 will be doubled while properties puchased in other years will have a far smaller hike in tax.

For a 500 square feet flat purchased in 1992-93, a family paid Rs 1,328 in property tax annually. “From April 1, the family will have to pay Rs 2,260, an increase of Rs 900,” Zagade said.

Similarly, from properties purchased between 2002 and 2005, property tax will go up from Rs 1,171 to Rs 1,970 per year. The rate for this period will go up from Rs 8.64 to Rs 12.58 per square feet.

For properties purchased between 2006 and 2020, which are considered new, the rate is Rs 17.18-Rs 29.94 per square feet and this will go up to Rs 31.44. “Properties purchased between 2006 and 2020 will see an increase in tax from Rs 180 to Rs 337,” Zagade said.

For old non-residential properties puchased between 1990 and 2005, including commercial and residential properties, the tax will be increased by at least Rs 3,500 annually. “Whereas for new properties purchased between 2006 and 2020, the tax will be increased by at least Rs 1,500 annually,” Zagade said.

There are as many as 2.5 lakh old residential properties in Pimpri-Chinchwad and at least 3 lakh commercial and residential properties.

“The municipal commissioner has used his discretion to hike the property tax. The administration does not need the general body meeting or standing committee’s permission though the decision will be placed before them,” Zagade said.

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