Chandigarh: Property tax hike evokes strong opposition in UT

Just a day after the UT administration approved a three-fold hike in property tax on residential properties and doubled the tax on commercial properties as the new financial year kicks, city residents, traders, resident bodies, and Congress member of Parliament Manish Tewari, on Tuesday, expressed strong opposition to the move.

Property tax, initially introduced in 2004 at 3% of the annual rateable value (ARV) for commercial, industrial and institutional buildings, was extended to residential properties in 2015. Ever since, despite nearly a decade of inflation and the civic body’s growing financial strain, the rates remained unchanged—until now.

According to the administration’s latest notification, residential property tax will now be charged at 9% of ARV— three times the previous rate, while commercial and industrial property tax will rise to 6% of ARV—double the earlier rate.

However, in a controversial decision, the administration has exempted government-owned properties from the hike, sparking criticism.

Tewari took to social media to offer a political condemnation of the move.

“A table agenda to increase property tax was brought before the House on February 17 and it was subsequently withdrawn before it could even be deliberated upon. How can property tax be levied by Chandigarh Municipal Corporation (MC) without the House being given a chance of even discussing it much less passing it? This tantamounts to subverting the Constitutional mandate of the MC House. Had the House rejected the table agenda, even then, under Section 423 of the Punjab Municipal Corporation Act 1976, a show cause notice has to be issued by the government to the House through the commissioner before any proceedings are annulled or modified or held to be illegal,” Tewari posted.

“What has happened therefore is a complete travesty if not a perverse illegality. The MC must uphold its Constitutional remit and the powers given to it under the Constitution of India. Section 423. Government’s power to annul or modify illegal proceedings - the government may by written order, annual or omit from the records any proceedings of the Corporation which it considers not to be in conformity with this Act, or any rules or bye-laws made thereunder and may do all things necessary to secure such conformity: provided that, unless in the opinion of the Government the immediate making of such order is necessary, it shall before making an order under this section, give the Corporation an opportunity of showing cause why such an order should not be made,” he added.

The hike in property tax on commercial properties also received condemnation from the traders’ body. Chandigarh Beopar Mandal (CBM) condemned the UT administration and MC’s decision, calling the move “anti-commerce” and “unjustified”. CBM president Sanjeev Chadha said the increase in property tax was irrational and would harm the already down businesses in Chandigarh. The CBM demanded the reconsideration of the tax hike by the UT administrator, municipal commissioner, and mayor.

Baljinder Singh Bittu, chairman, Federation of Sector Welfare Associations of Chandigarh (FOSWAC), said the exorbitant increase in property tax, coming right after the heavy burden of an enhanced collator rate, has come as a bolt from the blue for the residents of Chandigarh. “It is evident that both the Chandigarh administration and the MC are financially mismanaged and bankrupt. Instead of curbing their wasteful expenditures, they are unfairly burdening the residents,” he said, adding, “FOSWAC strongly opposes this unjustified three-fold increase in property tax and demands its immediate roll back. If this decision is not revoked, we will have no choice but to take to the streets in protest.”

Meanwhile, Chandigarh Resident Associations Welfare Federation (CRAWFED) also expressed strong resentment against the increase in various taxes on the public by the MC. CRAWFED chairman Hitesh Puri stated that the massive increase in tax rates has created chaos among the people of Chandigarh. “The corporation’s treasury is empty, and no funds are being received from the central government. The corporation is resorting to punishing the public for its failures by drastically increasing the rates of various services without proposing any improvement.This has caused great resentment among both the common people and the business community. Since a majority of the population in Chandigarh comprises salaried individuals who live within their limited resources, the corporation’s exorbitant tax increases have caused significant anger among them.”

Meanwhile, the Chandigarh Congress has decided to gherao the MC office on Friday to protest against the unprecedented hike in property tax by the Chandigarh administration.