Pune: PCMC’s Strategic Move Pays Off: Water Tax Collection Soars to Rs 63 Crore, Surpassing Expectations

Varad Bhatkhande

Pimpri Chinchwad, 4th March 2024: The decision of the Pimpri Chinchwad Municipal Corporation (PCMC) to integrate property tax and water tax collections has proven successful, marking a historic achievement with the recovery of Rs 63 crore in water tax. Nilesh Deshmukh, the Assistant Commissioner of the Taxation and Tax Collection Department, has expressed his commitment to setting a record in water tax collection over the remaining 28 days.

Pimpri-Chinchwad city boasts 3,11,391 authorized tap connections across residential, commercial, and industrial sectors. Historically, PCMC faced challenges in generating income from the water supply department, leading to mounting arrears. While property tax revenues were on the rise, water tax arrears posed a financial challenge for PCMC. To address this, an investigation was initiated to transfer water tax collection from the PCMC administration to the Taxation and Tax Collection Department.

After studying the practices in some Municipal Corporations in the state that successfully combined water tax and property tax collections, the PCMC administration, under the guidance of Commissioner and Administrator Shekhar Singh and Additional Commissioner Pradeep Jambhale-Patil, decided to integrate tax collection and water tax from the financial year 2023-24. This strategic decision has proven successful, resulting in the collection of Rs 63 crore in water tax—a significant milestone for the PCMC.

In the financial year 2023-24, the Taxation and Tax Collection Department of PCMC has shifted its focus to water tax collection while concurrently maintaining a robust property tax collection effort. A team comprising meter inspectors and tax collection department personnel have taken steps to disconnect the water supply of over 250 property owners who have persistently neglected their water tax payments over several years. This proactive measure has led citizens to opt for water tanker services. Simultaneously, the taxation and tax collection department is reaping the benefits of increased property tax recovery.

Initially, meter inspectors expressed some scepticism about the simultaneous collection of property and water taxes. However, with the collaboration of the tax collection department and MSF officers, the team is now effectively managing water line collections. Consequently, the meter inspectors are in “action mode,” striving to maximize water tax collections in the remaining 28 days of the financial year.

Moving forward, a campaign to detect fraudulent water connections will be implemented by the Taxation and Tax Collection Department in collaboration with the Water Tax Department in the coming financial years. For the present, a campaign to disconnect the taps of defaulters will be in effect until March 31.

The PCMC currently faces water dues totaling Rs 128 crore 38 lakh 74 thousand across its eight regional offices. Nilesh Deshmukh, Assistant Commissioner of Taxation and Tax Collection, faces a significant challenge in collecting this outstanding current demand and arrears.

PCMC Additional Commissioner Pradeep Jambhale Patil mentioned, “The Taxation and Tax Collection Department has seen a rise in income; however, water tax collection was neglected. In response, we thoroughly examined the approach adopted by some Municipal Corporations in the state, where taxes and water charges are collected jointly. Consequently, meter inspectors have been integrated into the taxation and tax collection department, leading to a notable increase in water tax collection. We are considering the proposal to streamline the payment process by allowing citizens to pay property tax and water utility bills together in the upcoming financial year 2024-25. This initiative aims to simplify the payment process for citizens. Additionally, there is a target to collect Rs 75 crore in water tax by March 31.”