Pune administration says property tax exemption for small houses will cause basic income loss of Rs 255, proposes 10% hike

2 minutes of readingPuneFebruary 2, 2026 03:34 pm IST

The Pune civic administration has proposed a 10 per cent hike in property tax for the next financial year, expecting a revenue loss of around Rs 255 crore due to the election promise of a complete property tax exemption for houses less than 500 sq ft.

the civic budget For 2026-27 it will be introduced soon and will see a natural increase in spending to meet the demands of the city. Revenue collection also has to increase to cover expenses.

“All political parties have promised exemption from property tax for residential properties of area less than 500 sq ft in their election manifestos. Therefore, the decision is likely to be taken unanimously by the elected body,” additional municipal commissioner Prithviraj B P said.

Prithviraj said the civic administration had studied the situation that would arise if the elected body decided to implement the BJP’s election promise. “There are a total of 12,69,163 residential properties in the jurisdiction of Pune Municipal Corporation (PMC), of which 4,29,245 have an area of less than 500 square feet. If tax exemption is granted for such flats, the property tax revenue will be reduced by Rs 255.59 crore,” he said.

In a proposal tabled in the standing committee, Naval Municipal Commissioner Kishore Ram proposed an increase in property tax by 10 per cent, stating that the previous increase in tax rates occurred almost eight years ago, while the civic body’s expenditure had been increasing steadily.

There are 14,92,803 properties registered within the PMC limits, with a target property tax revenue set at Rs 2,556.15 crore. Among these properties, there are 12,69,163 residential properties, 1,67,934 non-residential properties, 30,675 open lands and 25,031 mixed-use properties.

If tax exemption is applied to all properties with area less than 500 sq ft, 5,24,822 properties will be eligible for the benefit and revenue collection will decrease by Rs 406.11 crore.

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“The elected body is likely to maintain tax exemption for residential properties,” a civic official said. Meanwhile, the civic administration is exploring the use of technology, including artificial intelligence, to identify unassessed properties and change-of-use properties.

Ajay Jadhav is assistant editor at The Indian Express, Pune. With more than 22 years of experience in the industry, he is a highly specialized journalist whose work focuses on the intersection of urban infrastructure, governance and sustainability. Professional Experience Role: As Assistant Editor, he plays a key role in the editorial direction of the Pune office, specializing in urban policy and its direct impact on citizens. Education: He has a Master’s degree in Communication and Journalism from Savitribai Phule Pune University and a PG Diploma in Corporate Social Responsibility (CSR). He also studied at the prestigious Fergusson College. Shocking reports: You are credited with articles based on research on conservation staff (waste workers) who influenced national policy to improve working conditions. He is also known for exposing the contrast between high-level infrastructure (such as helipads for leaders) and the lack of basic services such as schools in his home districts. Personal Interests: An avid hiker and sports enthusiast, his personal interest in outdoor activities often influences his reporting on environmental protection and sustainable development. Recent Notable Articles (December 2025) Your reports at the end of 2025 have been dominated by the upcoming January 2026 civic polls in Pune and Pimpri-Chinchwad, and the city’s infrastructure boom: 1. Political Analysis (Civic Elections 2026) “Not friendly, but a bitter fight looms between BJP and NCP over PMC, PCMC” (22) December 2025): A detailed look at Intense rivalry between Mahayuti partners as they prepare for the January 15 municipal elections. “Pune civic polls: Big blow for NCP and NCP(SP) as leaders switch to BJP” (December 20, 2025): Report on poaching and high-profile party changes ahead of elections. “Ajit Pawar’s NCP continues dominance in Pune, wins 10 out of 17 local bodies” (December 21, 2025): Analysis of local self-government body election results as precursors to major civic polls. 2. Infrastructure and Urban Development “Looking ahead in 2026: Pune will see inauguration of long-awaited Hinjewadi to Shivajinagar metro route” (December 22, 2025) – An “insights” article on the critical Metro Line 3 project expected to be completed by March 2026. “Pune construction: PMC to build double-decker bridge over Mula-Mutha river” (18 December 2025) 2025): details a major project aimed at facilitating traffic between Hadapsar and Kharadi. “Condition of Pune-Kolhapur road to improve in a year: Gadkari” (December 4, 2025): Report on Union Minister’s assurance regarding one of the most critical transport corridors in the state. 3. Civic Governance and Environment “Install sensors and LED indicators at construction sites within 15 days: PMC for builders” (December 16, 2025) – A continuation of the “Breathless Pune” series, reporting on new mandates for builders to monitor air quality in real time. “Errors in electoral rolls: PMC corrects data of 92,466 voters” (December 16, 2025): Tracking administrative efforts to clean up voter lists ahead of 2026 elections. Signature style Ajay Jadhav is known for his accountability journalism. His work often bridges the gap between high-level politics and the ‘ground zero’ reality of Pune residents. It is particularly focused on sustainable development, ensuring that as Pune becomes a ‘Bharat Mandapam’ style destination (referring to its report on the Lohegaon project), its environmental and social safeguards remain intact. X (Twitter): @ajay_khape …Read more

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