Outcry growing against steep property tax increase in Chandigarh
As per the UT administration’s notification, residential property tax will now be charged at 9% of annual rateable value (ARV)— three times the previous rate, while commercial and industrial property tax will rise to 6% of ARV—double the earlier rate
After traders and residents, industrialists have also joined the growing outcry against the steep property tax hike imposed by the Chandigarh administration.
Opposing the hike, members of the Joint Forum of Industrial Association submitted a memorandum to Chandigarh Bharatiya Janata Party (BJP) president Jatinder Pal Malhotra.
Association chairman Chander Verma said the proposed property tax hike had not even been passed in the MC House, which was meant for discussing, approving and implementing policies for the welfare of the people.
“Any major decision, such as this tax increase, should first be approved by all House members. It seems that democratically elected councillors do not have any role in making decisions on behalf of the public of Chandigarh. Before passing the burden to the public, the administration should address the wastage and loopholes in the working of the municipal corporation,” he said.
As per the UT administration’s notification, residential property tax will now be charged at 9% of annual rateable value (ARV)— three times the previous rate, while commercial and industrial property tax will rise to 6% of ARV—double the earlier rate.
The members said the current proposal to increase property tax by 200% at once was highly unjustified and will create a financial burden on property owners: “We strongly suggest that if the municipal corporation must increase property tax, it should be limited to a maximum of 25% across all sectors, whether residential, commercial and industrial.”
They further opposed the imposition of garbage charges in the commercial as well as industrial sector.
“Unlike residential areas, commercial and industrial units do not generate wet waste. In fact, industrial waste is already required to be disposed of through fixed agencies assigned by the pollution department. The only dry waste generated by commercial/ industrial units consists of small amounts of items like newspapers, tea bags, and water bottles—a maximum of 200-450 grams per unit. Despite this, businesses are being charged an unjustified amount of ₹1000 plus per unit, whereas it was initially decided at ₹500 per unit,” the members said.
They argued that commercial/ industrial units played a crucial role in employment generation and tax contribution. Therefore, garbage charges should be applicable only to residential units and food industry establishments, while commercial and industrial units should be exempted.
“Chandigarh must function as a welfare state, supporting businesses rather than overburdening them with unfair charges,” the members alleged.
The leaders and councillors of the BJP met chief secretary Rajeev Verma on Thursday to demand an immediate rollback of the hike in property tax on residential and commercial properties in Chandigarh.
While opposing the UT administration’s decision, BJP leaders, led by state president Jatinder Pal Malhotra and mayor Harpreet Kaur Babla, submitted a memorandum to the chief secretary, stating that this tax imposed an unnecessary financial burden on the people and was completely unacceptable.
Besides withdrawal of property tax hike, BJP leaders also urged administration to focus on the development and welfare of the people instead of burdening them financially. Mayor Babla said, “The people of Chandigarh are already struggling with inflation. Imposing a house tax on them is completely unjust. The BJP stands firmly with the people and will fight against this anti-public tax at all levels.”
BJP councillors also strongly opposed the decision, stating that “The role of the municipal corporation is to protect public interests, not to impose additional burdens on them. The house tax is completely unjustified, and the BJP will fight against it at every level.”
MP Manish Tewari takes up hike in Parliament
Chandigarh MP Manish Tewari on Thursday demanded withdrawal of the exorbitant hike in the house tax and collector rates for registering property in Chandigarh.
Raising the matter in the Lok Sabha during the time allotted for “matters of urgent public importance”, Tewari noted that the whopping hike in the house tax rates and collector rates for the sale and purchase of property was apparently done to meet the municipal expenses of the city that is supposedly bankrupt.
He said the Chandigarh municipal corporation should get 30% of the total grant the UT got out of the union budget according to the formula evolved by the Delhi Finance Commission.
He said this year ₹ 6,100 crore had been allocated to the UT: “This means, MC should get between ₹ 1,700 to ₹1,800 crore to meet its various expenses.”
He added that MC got only about ₹570-580 crore, which was far less than the 30% recommended by the Delhi Finance Commission and even the 15th Finance Commission for inter-se devolution of resources between states and their respective urban local bodies.
