cities

Covid-19 hits Pimpri-Chinchwad tax collection by Rs 300 crore

According to the information available from PCMC, on all fronts, be it property tax, LBT, GST, water tax or building permission, the revenue collection has taken a big hit.

The Covid-19 pandemic has dealt a severe blow to the Pimpri-Chinchwad Municipal Corporation (PCMC) as its revenue collection has dipped by over Rs 300 crore for the year 2021, civic officials said.

According to the information available from PCMC, on all fronts, be it property tax, LBT, GST, water tax or building permission, the revenue collection has taken a big hit.

Officials said in 2019-2020, the total revenue collection was Rs 3,153 crore. However as Covid-19 raged in 2020-21 with industries, malls, multiplexes, theatres, shops remaining closed for months, the revenue collection dipped to Rs 2,846 crore, Rs 307 crore less than the previous year.

In 2019-20, PCMC had achieved a revenue collection of Rs 1,709 crore through LBT. In 2021, it dipped by Rs 13 crore as it collected Rs 1,696 crore.

Similarly, on property tax and water tax too, PCMC has been hit. The target for 2020-21 was Rs 870 crore. The PCMC property tax department managed to collect only Rs 577 crore.

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Deputy Municipal Commissioner Smita Zagade, however, said, “This year’s property tax collection was better than previous three years. Every year, we used to have around Rs 500 crore. However, for 2020-21, the target was almost doubled to Rs 870 crore. The target was decided before Covid-19 had set in and lockdown was imposed.”

Zagade said on March 31, they had the highest collection of Rs 17 crore on a single day.

Water tax collection for 2019-2020 was Rs 45.44 crore. “In 2020-21, it was Rs 44.15 crore,” officials said.

Deposits kept banks have also earned less interest for PCMC. “In 2019-20, PCMC secured interest Rs 291 crore. In 2020-21, it earned Rs 140 crore from interest,” said PCMC Chief Accounts and Finance Officer Jeetendra Kolambe. “We have around Rs 2,000 crore deposits in various nationalised banks,” he added.

Since construction activity was shut for a few months during 2020-21 fiscal due to the pandemic, the building permission fee for PCMC has also dipped. In 2019-20, it had raked in Rs 586 crore revenue. In 2020-21, it managed only Rs 322 crore revenue.

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