Chandigarh administration reduces property tax hike after outrage

Time of India

24-04-2025

CHANDIGARH
: Following outrage among all sections of society, the Chandigarh administration on Wednesday slightly reduced the hike in property tax rates, announced on March 31 and implemented from April 1. The UT had gone ahead with steep hike in tax rates for both commercial and residential properties. The UT local bodies department issued the notification of revised property tax rates on Wednesday evening, giving some relief to taxpayers.
As per the revised notification, 3 times hike in property tax on residential properties was reduced to two times. In the commercial segment, 6% of the annual rateable value was decreased to 5%.
In case of
Chandigarh Housing Board
(CHB) flats, Cooperative House Building Societies, and other residential flats (excluding SCFs), having a total covered area of 500 square feet and above within MC limits (irrespective of zones), the revised rate of the total covered area was decreased to Rs 2 per square foot from Rs 3 per square foot for the current financial year of 2025-2026.
Residential taxpayers from Sector 1 to Sector 19 and Sector 26 to 28 will now have to pay Rs 5 per square yard on the vacant plot area and Rs 2.50 per square foot on the total covered area on all the floors. Earlier, it was Rs 7.5 per square yard on the vacant plot area and Rs 3.75 on the total covered area on all the floors.
Taxpayers from Sector 20 to sector 25, sector 29 to 38, Modern Housing Complex Manimajra Industrial areas, and all SCFs situated within MC limits will now have to pay Rs 4 per square yard on the vacant plot area and Rs 2 per square foot on the total covered area on all the floors. Earlier, it was Rs 6 per square yard on the vacant plot area and Rs 3 per square foot on the total covered area on all the floors.
MC's annual earning to come down
With this revision in property tax in residential and commercial segments, the Chandigarh municipal corporation expects to earn approximately Rs 70 crore in annual revenue instead of the earlier expected Rs 90 crore. As per records, there are around 1.42 lakh properties in Chandigarh. Out of these, around 1.12 lakh properties are residential and the remaining 30,000 are commercial properties.
'It's all due to BJP'
The BJP said the decrease in property tax hike is the result of party's efforts. The BJP said mayor Harpreet Kaur Babla, along with BJP leaders, persistently raised the issue of the steep property tax hike, voicing concerns of the common people and tirelessly advocating for their financial well-being. The matter was taken up at multiple levels, with continuous dialogue and meetings involving residents, traders, public representatives, and Chandigarh administration.
'UT, BJP was on backfoot'
Not satisfied with the tax hike reduction, Chandigarh Congress demanded a complete rollback of the hike. Chandigarh Congress president H S Lucky said Congress demands a complete rollback of the increased property tax as it was hiked arbitrarily without following due procedure. "This much reduction has also happened because of the sustained pressure built by Chandigarh Congress and general public. The BJP and Chandigarh administration were on the backfoot because of the continuous agitation launched by the Congress," he said.
MP demands complete rollback
Terming the way the UT first made a steep hike and then slightly reduced the tax as arbitrary and not in accordance with processes and procedures, Chandigarh MP Manish Tewari demanded a complete rollback of the tax hike and asked the UT to give a 30% budget share to the MC. He said, "Property taxes were levied without any structured consultation with public representatives or the people of Chandigarh acting through their respective RWAs. The tax proposals were never placed before or deliberated by the house tax committee or general house of the MC. The relevant agenda item was placed before the house and then withdrawn without an iota of discussion.
"The Chandigarh Administration imposed the house tax suo moto and has now reduced it suo moto. Due process of consultation, deliberation, and discussion was never followed when the original notification was promulgated. This is precisely what happened when the Chandigarh Administration, without hearing the General House of the MC, annulled the free water resolution passed by the General House of the Municipal Corporation, which was in turn annulled by the General House of the Municipal Corporation subsequently. That matter now rests in a state of splendid animation," he said.
Tewari said, "The Congress demands the complete rollback of the property tax levied and demands that 30% of the funds received by the Chandigarh administration via the Union Budget must be an automatic pass-through to the MC without any hindrance, as is the norm laid down by various Finance Commissions."