Higher Property Tax for Luxury Apartments

Higher Property Tax

The Pune Municipal Corporation (PMC) will now charge higher property tax based on the amenities in housing societies.

The PMC (Pune Municipal Corporation) has decided to levy a capital tax on 80,000 houses and apartments. Property tax at Pune will now be collected based on the price of the flat. Those owning luxury flats will pay a higher amount.

Property tax is currently collected by PMC using an area-specific ready reckoner.

But this means that flats bought in luxury societies pay the same property tax as flats bought in non-luxury societies.

For example, a 500-square-foot flat costs Rs 20 lakhs in normal societies. A similar flat in luxury residential projects may be around Rs 40 lakhs. However, the tax levied is the same. The municipal administration has thus decided to avoid such disparities in the future by charging higher property taxes based on amenities.

In this regard, 100 houses were initially covered by this scheme in the pilot project. Levying this capital tax provides the municipal administration with more assets.

The Pune municipal commissioner asserted that the city has a variety of housing projects. Some of them have swimming pools, gymnasiums, cinema halls, hotels, playgrounds, entertainment centers, etc., while there are many societies in the same places that have no facilities.

According to his statement, the tax will be assessed based on the facility and price of the flats. Therefore more luxurious societies will invite a higher amount of tax. This will bring uniformity in taxation.