Chandigarh MC House clears tax hike for govt properties too

Hindustan Times

01-05-2025

In a significant move, the BJP-led Chandigarh Municipal Corporation (MC) House on Wednesday approved a proposal to extend the recently implemented property tax hike to government buildings, which had been exempted by the UT administration.
The decision, however, still requires UT approval to come into effect.
On March 31, the UT administration had approved a steep hike in property tax for residential and commercial properties starting April 1, but chose to exempt government-owned buildings from the increased rates.
The decision sparked sharp criticism from city residents and opposition leaders alike, especially given that government buildings collectively owe a staggering ₹250 crore in unpaid property taxes, further straining the cash-strapped MC's finances.
During Wednesday's meeting, former mayor Anup Gupta raised concerns about the fairness of UT's exemption.
'Why was the tax hike imposed solely on city residents while government buildings were exempted? Despite already enjoying a 25% annual rebate on service tax, many of these properties have defaulted on payments, resulting in a massive ₹250 crore in outstanding dues—a significant shortfall in MC's annual revenue,' Gupta said.
He proposed that the same tax hike be imposed on government buildings to ensure fairness and boost the city's revenue, while also demanding that the House's decision of revoking the 25% rebate to government buildings be implemented at the earliest.
Gupta's proposal was unanimously supported by BJP councillors, who then proceeded to approve the increased tax rates for government buildings, similar to those imposed on residential and commercial properties.
MC's decision, however, will need UT administration's approval, as is the norm.
Notably, over 650 government buildings—including those belonging to the Punjab, Haryana, Himachal Pradesh and central governments—are on the tax defaulters' list, along with institutions under the Chandigarh administration itself.
Autonomous institutes like the Post Graduate Institute of Medical Education and Research (PGIMER), Panjab University (PU) and Punjab Engineering College (PEC) alone owe ₹123.13 crore.
As part of its recovery strategy, MC has already issued property attachment notices to three institutions and has asked them to declare their movable and immovable assets. If dues are not cleared, the civic body is planning to seal their properties.
In October 2024, MC councillors had even revoked the 25% rebate in service tax being offered to government buildings annually, but the decision was not approved by the UT administration.
Congress, AAP stage walkout over rising financial burden on residents
Earlier, as the MC House got into session around 11 am, high drama unfolded as opposition councillors from the Congress and Aam Aadmi Party (AAP) launched a scathing protest against the BJP-led administration's decision to hike property taxes in Chandigarh.
Wearing black clothes and badges, the Opposition stormed the House with slogans like 'BJP aai, taxes lai' and 'Mayor Madam brought tax hike as a gift from Amit Shah'.
The opposition councillors remarked that the tax hike was a reflection of the BJP's decision to target residents' pockets to help MC recover from financial crisis and BJP's failure to bring in legitimate additional grants from the administration.
To defend the move, mayor Harpreet Kaur Babla invoked media reports, quoting Punjab governor and UT administrator Gulab Chand Kataria, claiming the Union ministry of home affairs (MHA) will soon release ₹238 crore for MC.
HT had on April 25 highlighted that UT administration has written to MHA and sought ₹238-crore recurring savings resulting from UT electricity department's privatisation that will further be redirected to the civic body.
Calling it a 'celebratory moment', Babla urged councillors to think about development projects for their wards.
Sweet distribution by BJP causes uproar
In a move that shocked many, BJP councillors, on the directions of Babla, began distributing sweets on the floor of the House — a gesture that backfired entirely.
The Congress and AAP leaders reacted with fury, condemning the act as 'inhuman' and 'insensitive,' especially given that the country is still mourning the recent terror attack in Pahalgam, where 26 innocent tourists were killed.
Congress councillor Gurpreet Singh Gabi said, 'BJP has hurt religious and patriotic sentiments of each and every citizen of India by distributing sweets. BJP councillors displayed a shameful and inhuman mindset by distributing sweets, even as the pyres of 26 martyrs from Pahalgam had not yet cooled. This act not only dishonours the sacrifices of our brave martyrs but also exposes the inhuman and apathetic mindset of the BJP.'
Senior deputy mayor Jasbir Singh Bunty exposed what he called the 'hollow announcements' of the BJP. 'Earlier, ₹92 crore was promised post-mayoral polls, but not a rupee has come. Now, they're banking on a 'requested' ₹238 crore, not even approved or confirmed yet. Is the BJP celebrating a tax hike or their failure to secure central funds?'
AAP councillor and leader of Opposition Jaswinder Kaur added that the AAP demanded immediate removal of the BJP councillors and the mayor involved in this act, and a public apology and expression of remorse by them.
The BJP hit back, insisting that the sweet distribution was unrelated to the tribute and meant solely to celebrate the central government's reported intent to financially assist the MC. Mayor Babla accused the Opposition of twisting facts to suit a political narrative. 'Tributes were paid with honour. Linking that with our separate celebration of the funding news is misleading and shows the opposition's petty mindset,' she remarked.
BJP councillors even demanded suspension of Opposition councillors for 'politicising martyrdom'.
However, by walking out of the House before tabling of key agendas around 3 pm, the Congress and AAP councillors left the floor open for the BJP-led MC to pass a steep hike in parking fees under the Smart Parking project and water bill penalties — without a single voice of dissent being recorded.
The 35-member MC House has the BJP in majority with 16 councillors, followed by 13 of the AAP and six of the Congress. Member of Parliament Manish Tewari, who has an ex-officio vote in the House, did not attend the Wednesday meeting.