Municipal commissioner Dilip Band told newspersons on Monday that he has used his special powers for imposing the hike on all new properties registered from Tuesday. The tax revenue is expected to go up by Rs 2 crore.

Justifying his decision, Band said the propery tax rates in PCMC limits are very low as compared to other cities in the state and so the increase in tax. Sahebrao Gaikwad, assistant commissioner and head of property tax department, PCMC said while the old rates were Rs 1.60 per sq.ft for residential and Rs 5 per sq.ft. for commercial properties, the new rates to be assessed in 2008-09 will be Rs 1.90 per sq.ft for residential and Rs 6 per sq.ft for commercial properties. Gaikwad said the PCMC has collected an all-time high tax of Rs 74 crore. Last year, the total collection of property tax was Rs 60.15 crore.