21-04-2025
HDMC retracts UGD user fee and SWM cess after protests
Hubballi: The Hubballi-Dharwad Municipal Corporation (
HDMC
) decided to remove the newly introduced
UGD user fee
and
SWM cess
following protests from public and business sectors. However, the SWM user fee will continue to be collected alongside property tax. Trade and industry organisations, partially content with this decision, plan to address the substantial
property tax increase
with govt authorities.
The public strongly opposed the HDMC's implementation of additional fees, including the SWM User Fee and UGD User Fee, alongside increased property tax. The
Karnataka Chamber of Commerce and Industry
(KCCI) urged citizens to withhold tax payments until the corporation removed these fees and reduced the tax burden.
On Monday, mayor Ramanna Badiger, council party members, and commissioner Rudresh Ghali met with the chamber of commerce representatives, led by its former president Shankranna Munavalli. The chamber rejected HDMC's proposal to halve the UGD user fee, demanding its complete removal.
The meeting concluded with agreements to completely remove the UGD user fee and SWM cess, while maintaining the SWM user fee, despite KCCI's objections. The HDMC also reduced open site fees to 25 paise per square foot from the initial 50 paise. These changes will take effect in 2025-26, with potential revisions the following year.
by Taboola
by Taboola
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Mayor Badiger acknowledged that these adjustments would result in approximately Rs 25 crore revenue loss. The council will formally communicate these decisions to the govt in its next general meeting. The corporation will also highlight challenges in UGD user fee collection, noting that 40% of the twin cities lack UGD network coverage.
The KCCI is partially satisfied, advocating for permanent implementation of these changes rather than temporary measures for the current financial year. Munavalli expressed appreciation for the corporation's actions but emphasised the need for lasting solutions.
Munavalli acknowledged the significant property tax increase resulting from the govt's new property guidance values. The chamber plans to address both this issue and the user fees with the govt. The corporation extended the 5 percent discount deadline to May 20 from April 30, though KCCI requested an extension until May 31.
