ARV of new properties cut

PUNE: In an attempt to provide relief to owners of owners of new properties in the city, the civic standing committee on Tuesday reduced the upper limit of rates for calculating the annual rateable value (ARV) to Rs 2.25 per square feet from Rs 2.60 per square feet.

Since property tax is collected as a percentage of ARV, the reduction in rate is expected to result in a fall of about 10 per cent in property tax for residential areas.

The NCP, Shiv Sena and the BJP joined hands to support the new rates and also claimed to have scrapped the ready reckoner method for calculating the rates for new properties.

However, though the five zones that were formulated for calculating property tax rates under the ready reckoner method were scrapped, the three parties have proposed to formulate 700 zones of the city as a base for calculating taxes.

Leader of the house Anil Bhosale (NCP) told reporters that the new 35,000 properties that have been assessed between 2005 and 2007 will be provided with an amnesty scheme, wherein the higher tax payment made by them in the last two years will be adjusted in the new bills.

"New property owners were unjustly burdened with high rates due to the ready reckoner method in the last two years, which we have scrapped," leader of opposition Vikas Mathkari (BJP) said.

When asked what was the basis of formulating the 700 zones, the committee members failed to provide a satisfactory answer.

Deputy commissioner Dnyandeo Thube, incharge of tax assessment and tax collection department, said the market rates have been considered while fixing the rates for the 700 zones, but failed to provide details about the zones.

Thube said institutions registered as charitable institutions will also be given concession in property tax.

The Congress members in the standing committee strongly condemned the move, stating that it was just another stunt by the three parties to show that they have provided relief to citizens.

"In fact, they have just scrapped the ready reckoner method on paper. The new rates proposed by them are not going to make a big difference. We (Congress) had proposed an amendment to fix rates based on the 2004-05 rates, but they did not accept the amendment," leader of Congress party in PMC, Ulhas alias Aba Bagul, said.