Chandigarh Admn notifies partial rollback in property tax hike

Facing criticism from all political parties and various associations, the UT Administration today partially rolled back the property tax hike.

In the notification issued on March 31, the Administration had increased the property tax on residential property to three times the previous rate. The tax on the commercial and industrial property tax was increased to 6% of the annual rateable value (ARV) — double the earlier rate.

Budging under public pressure, the Administration has reduced the property tax on the residential property from three times to two times and that on the commercial, industrial & institutional lands and buildings from 6 per cent of the ARV to 5 per cent.

Punjab Governor and UT Administrator Gulab Chand Kataria had held long discussions with all top leaders of the BJP, Mayor, councillors and former mayors over the tax hike in the past few days.

The three-fold hike in the property tax on residential properties was strongly opposed by traders, residents welfare associations and industrialists. The BJP councillors even threatened to resign over the issue.

The agenda for tax hike was previously rejected in the Municipal Corporation’s General House meeting on February 17 amid protests by the elected councillors. Meanwhile, the Administration claimed that the step had been taken in the larger public interest.

MP Tewari seeks complete rollback

Chandigarh MP Manish Tewari said, “Property tax was levied without any structured consultation with public representatives or the people of Chandigarh acting through their respective Residents Welfare Associations. The tax proposals were never placed before or deliberated by the House Tax Committee or the General House of the Municipal Corporation. The Chandigarh Administration imposed the house tax suo motu and has now reduced it suo motu.”

“The fundamental issue is what are the principles or the formula by which funds are devolved by the Chandigarh Administration to the Municipal Corporation. It cannot be a case and should not be the practice that you show me the person and I show you the rule. The Congress demands the complete roll back of the property tax levied and that 30% of the funds received by the Chandigarh Administration vide the Union budget must automatically pass on to the MC without any let or hindrance as is the norm laid down by various Finance Commissions. We will consult with our India Alliance partners to decide the future course of action,” he said.

BJP efforts have borne fruit: Mayor

Mayor Harpreet Kaur Babla said, “We thanked the Administration for having heard the voice of the people. This significant move has been made possible due to the continuous and dedicated efforts of the BJP. The party leaders persistently raised the issue of steep property tax hike, voicing the 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 the Administration.”

Reduction eyewash: AAP

Jaswinder Kaur, AAP councillor and leader of the Opposition in the MC House, said, “The reduction in the property tax on residential and commercial properties is just an eyewash. This is not going to give any relief to the residents of Chandigarh. The party will continue to oppose the increase in the property tax. We demand for a complete rollback of the property tax.”

Chandigarh