Empty hotel fronts in PCMC area as owners shut operations to protest steep tax increases
By Prashant for PuneriPages.in
If you’ve been eating out a little less lately or noticed your favourite thali joint has quietly upped its prices, there’s a reason—and it’s not just inflation. Pune’s hospitality sector is going through a storm, and at the heart of it is a sharp rise in taxes that has left hotel and restaurant owners reeling.
As someone who lives here, eats here, and cares about how this city functions, I couldn’t just scroll past the recent reports. I had to dig in.
Table of Contents
What’s Really Going On?
Over the last few weeks, hoteliers in Pune have raised the alarm. Their property tax bills? Up by as much as 50%. Garbage disposal fees? Hiked. Commercial water charges? Increased. All of this at a time when the industry is just recovering from the pandemic slump.
To put it in numbers (and this comes from one local hotelier I spoke to):
| Tax Component | Old Bill (FY 2023-24) | New Bill (FY 2024-25) | % Increase |
|---|---|---|---|
| Property Tax | ₹1,00,000 | ₹1,50,000 | 50% |
| Water Tax (Commercial) | ₹25,000 | ₹40,000 | 60% |
| Garbage Fee | ₹10,000 | ₹18,000 | 80% |
These are big jumps—enough to push small family-run hotels and mid-sized restaurants into serious trouble.
PMC’s Side of the Story
Now, I get it—PMC isn’t doing this out of malice. They have their own pressures. Rising operational costs, infrastructure needs, and city-wide civic upgrades need funding. But here’s the catch: when you raise taxes without consulting stakeholders or showing exactly where the money will go, you risk breaking the very backbone of local business.
As of now, there hasn’t been any detailed clarification from the PMC tax department, except a general statement about aligning with “updated commercial valuations.” That’s not enough.
How This Affects All of Us
Let’s say you’re not a hotelier—why should this matter to you? Simple:
- Dining Out Will Get Costlier: When fixed costs go up, menu prices follow. A dosa that cost ₹65 might soon be ₹80.
- Jobs Are at Risk: Every closure puts dozens of jobs—chefs, waiters, kitchen staff—at risk.
- Tourism & Business Travel Will Take a Hit: Pune’s charm is in its culture, food, and hospitality. Make that expensive, and we lose our edge.
What the Hoteliers Are Asking For
They’re not asking for a free pass. Here’s what they’ve proposed:
- A special tax slab for the hospitality sector, considering it’s a major job creator.
- Staggered implementation of the new hikes so businesses have time to adjust.
- Better transparency on how the additional revenue will improve hospitality-related infrastructure.
These are not unreasonable demands. They’re asking for breathing room.
What Could Be Done Better
Here’s a thought: what if the PMC sat down with the Hotelier’s Association for a proper dialogue? What if they publicly published how these new funds will be used to benefit the very industry they’re taxing?
Imagine improved drainage, better roads around hotel zones, or enhanced waste management support. That would make the tax hike a bit easier to digest.
So, What’s Next?
There’s a lot happening behind the scenes. The Association is reportedly planning to escalate the matter to the state level. Some local MLAs have voiced support. But a formal sit-down with the PMC? Still pending.
I’ll be keeping an eye on it—and I hope you do too.
Because this isn’t just about business. It’s about our weekend dinners, our friend’s birthday plans, and the street food culture we’re so proud of.
Let’s not lose that to bureaucracy.
Written by someone who loves misal pav and believes the heart of a city lies in its food.
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