Owners of unauthorized properties had to pay double the tax amount as penalty. Now they will have to pay the regular tax amount or one-and-a-half time of the levy, depending on the size of their houses. The civic officials said the decision of giving the discount was taken to give relief to the property taxpayers, suffering because of illegal construction by the builders.
“The owners of residential properties with less than 1,000sqft area will have to pay the regular levy, while those owning properties of more than 1,000sqft area will need to pay 1.5 times the tax amount,” said Suresh Jagtap, the head of PMC’s property tax department.
The PMC officials said the provision of the Maharashtra Regional Town Planning (MRTP) Act allows charging double the property tax amount as penalty.
It was observed that the builders dupe many property owners and do not give proper information about the property to them. After the property is bought, the owners are left with no option but to pay double the tax amount for no fault of theirs.
“As a solution to this problem, the state government in a notification in 2017 had given the power to the municipal bodies to finalize the penalty. Based on it, the PMC’s general body had offered discount to the property owners. It will now be implemented,” said a senior official of the PMC.
The city has around 10 lakh properties under its tax ambit. Prior to 2017, the number of properties was around 8.30 lakh. Nearly 1.67 lakh more properties have been added to the PMC limits after the merger of 11 villages. The city has nearly 60,000 illegal properties.
As per the PMC officials, the civic administration hopes to get more revenue from the tax in the current fiscal (2019-20). The revenue will go up by around Rs64 crore because of the added properties.