Open House: Is higher tax rates a solution to pull the Chandigarh MC out of the fiscal mess?

Do not commercialise policies

Rationality should be the mantra while taxing the public. Although public must be levied user charges for every service rendered by the government for inculcating sense of belonging among the users, but at same time administration too, must not commercialise its policies just for the sake of revenue generation. The government must act as a welfare state and not a corporate entity.

RP Malhotra, Panchkula

Cannot burden public disproportionately

The UT administration has indeed increased property taxes and collector rates, sparking debate and criticism among residents and business owners. This aims to generate an additional ₹54 crore annually. The Municipal Corporation argues that it is facing cash crunch, prompting the administration to seek additional revenue sources. But the burden falls disproportionately on residents and business owners while government properties enjoy exemptions and rebates. Government-owned properties continue to be taxed at the previous rate of 3% ARV, sparking criticism about unfair treatment. The tax hikes may stabilise the city’s finances but could also exacerbate growing dissatisfaction with the administration.

Capt Amar Jeet, Kharar

Explore other ways to generate revenue

To stop the wastage of Municipal Corporation funds, stop hosting events like laying of stones ceremony, reduce facilities to councillors and officers. Revenue from advertisement on MC building, parks, community centres, roundabouts, auction of properties and parking lots should be increased. Taxes must be in the range that common people can afford as there are plenty of other ways address the fund crunch.

Kirpal Singh, Chandigarh

Set up more fuel stations to generate revenue

Higher taxes are not the solution to pull the civic body out of the fiscal mess. The Municipal Corporation should not increase the property tax as the city residents are already under a lot of burden. They should look at other avenues like open more petrol stations equipped with CNG and EV charging stations to generate extra income. The civic body should convert the Daddu Majra dumping ground to a compressed biogas plant as done by Indore Municipal Corporation. It will augment the income and as well healthy air for the city residents. Compressed biogas can be a clean fuel alternative for both residential and commercial sectors.

Sunny Dhaliwal, Chandigarh

Will adversely affect sales

Recent hike in property tax by the UT administration will hit the common man’s pocket. Collector rates have also been revised with increased stamp duty will affect adversary sales of property in UT. Rather UT should earn revenue from digital ads, entertainment tax parking etc. Remember “rozi, kapda aur makan” should be given top property for the common man. Lastly, ways must be found to reduce first time house buyers by giving tax rebates and incentives.

Col TBS Bedi, Mohali

Strike the right balance

The need of the hour is to strike a balance. While the property tax should be hiked, albeit in a graduated manner, other measures should be undertaken concurrently. Temporary water connections in 22 villages outside Lal Dora/Phirni limits will generate revenue. The number of roundabouts with an annual advertisement fee should be increased to more than 30, as decided so far, which will add another significant sum. The facilities for councillors and study tours for them need to be put to a ruthless stop, saving a substantial chunk. Just put a stop to all the freebies, and the money will flow in.

Brigadier Advitya Madan, Chandigarh

Adopt Value Capture Financing

The increasing cost of public delivery systems is a big challenge in today’s time, when the cost of living is rising day by day. Value Capture Financing (VCF) can be one of the effective ways for future-proofing the finance structure of civic bodies, which is based on the principle where the private property that benefit from public investments in terms of infrastructure and related policy decisions of the government pay for such gains such as Floor Space Index (FSI), Land Value Tax, Betterment Levy, Development Charge, Vacant Land Tax, Land Pooling System, among others. Deploying appropriate VCF tools, distinct from the ordinary service charge levied on water, electricity or gas, can prove beneficial, which shall capture such increment in value of private land and buildings, and the government can use these to fund public projects, even with a small resource base.

Vaibhav Goyal, Chandigarh

Monetise unused civic assets

Labelled as an “anti-public” move, the property tax hike reflects the administration’s struggle to boost revenue for a financially strained Municipal Corporation. However, increasing taxes alone cannot be the long-term solution. Instead of burdening honest taxpayers, the administration must focus on plugging revenue leaks, enhancing transparency in municipal spending, recovering dues from defaulters. Introducing user charges for premium services, encouraging public-private partnerships for infrastructure, and monetising unused civic assets can diversify income streams. Nagpur offers a replicable model which generates ₹300 crore annually by selling treated sewage to industries and converting organic waste into biofuels, ensuring efficient, sustainable revenue through a PPP. A similar approach can be applied in Chandigarh to diversify income streams and improve waste management.

Aarti Rana Chauhan

Tap into city’s tourism potential

The authorities should tap into sustainable revenue sources. Chandigarh, along with its two arms—Mohali and Panchkula—has the potential to become a world-class tourism hub, much like Singapore. This transformation would not only boost local revenue but also contribute significantly to the national exchequer. To achieve this, residents and officials, including the Chandigarh Police, must embrace a tourist-friendly attitude. Initiatives like eco-huts near Sukhna Lake, water sports, and boating competitions can attract visitors. Shuttle services connecting nearby states will improve accessibility. Developing a film city can promote arts and create jobs, while a wellness centre blending Ayurveda with modern medicine can make Chandigarh a global medicity.

Vijay Katyal, Panchkula

Sudden hike cannot be justified

To maximise revenue collection, the UT Administration should collect property tax from all categories by reducing the tax rate. An increase of 300% in one go absurd and be abolished immediately and go in for enhancing the same by 25%. The administration should also curtail wasteful expenditure and cost of governance by rationalising man power and assess the performances of every employee.

KC Rana, Chandigarh

Systemic change required

While higher taxes may offer a temporary fiscal cushion, they are not a sustainable solution to systemic financial issues. Instead, a multi-pronged strategy is needed to enhance the Municipal Corporation’s income and service delivery. This includes broadening the tax base by bringing more properties and commercial units under the tax net, curbing tax evasion through digitisation and GIS mapping, and improving collection efficiency. Additionally, monetising municipal assets, promoting public-private partnerships, and tapping into central and state government schemes can generate revenue.

Harinder Singh Bhalla, Chandigarh

Weed out corruption at all levels

“Taxation without transformation is extortion”. The recent hike in property tax has ignited outrage, but can the citizens be blamed? When past audits have unearthed corruption in sanitation tenders (2021) and favouritism in vendor selection, how can the public trust the system? The Municipal Corporation must shift from hollow hikes to strict, stern, and stringent reforms. It’s time to curb and control corruption, digitise operations, and enforce transparent tenders and timely audits.

Shaurya Bhumbri, Chandigarh

Introduce user charges for premium serives

To address Chandigarh’s fiscal challenges, a multi-pronged approach is essential. First, improve tax compliance by digitising property records and expanding the tax net to include under-assessed commercial properties and unauthorized constructions. Second, enhance non-tax revenue through public-private partnerships (PPPs) for parking, advertising rights, and event management, while monetising municipal assets like community halls. Third, introduce user charges for premium services (e.g., waste collection for bulk generators) to ensure cost recovery without burdening low-income groups.

Gaganpreet Singh, Mohali

Use technology to improve efficiency

Raising property‐tax rates can ease short‑term pressure, but true fiscal resilience demands a broader strategy: digitise and geo‑tag all assets to curb leakages and boost collection efficiency; issue municipal bonds tied to visible service upgrades to attract retail investors; streamline procurement and payroll via performance‑linked budgeting; partner with tech firms for app‑based grievance redressal and utility management to enhance service delivery and public trust.

Amanjot Kaur, Mohali

Efficient utilization of resources needed

Raising tax rates may offer temporary fiscal relief to the Municipal Corporation of Chandigarh, but it is not a sustainable solution. Increasing taxes could burden citizens already grappling with inflation. Instead, the MC must explore alternative revenue streams and improve fiscal discipline. Monetising public assets, streamlining parking fees, and encouraging public-private partnerships in waste management and infrastructure can enhance income. Moreover, plugging revenue leakages through digitalisation and accountability in tendering processes can save crores. The corporation must also focus on efficient utilisation of existing funds by prioritising essential services and eliminating redundant expenditures.

Sanjay Chopra, Mohali

Develop assets that generate revenue

Sudden hikes in taxes can burden residents especially the middle and lower income groups but contrary to, it can generate quick funds for the civic body. Higher tax rates can provide immediate revenue, but the administration must identify unassessed and under assessed properties to widen the tax net. Use GIS mapping and satellite surveys to update records. Improve tax collection efficiently for timely payments and penalties for defaults. Ultimately, administration must develop parking lots and commercial spaces to generate recurring income. Implement e-governance to reduce corruption and increase accountability.

Anita K Tandon, Mundi Kharar

Broadening of tax base required

It is not necessarily the most effective or politically feasible solution on its own. Instead of raising rates, ensure that more people or properties are brought under the tax net. A comprehensive strategy involving broadening the tax base, improving efficiency, monetising assets, and transparent governance can offer long-term financial sustainability and better public service delivery.

Sheena, Kharar

Reduce unnecessary expenses

Higher property tax rates is not a proper and suitable solution to pull the civic body out of the fiscal mess. Instead, extraordinary expenses must be decreased. Extra revenue can be collected by arranging more fairs and exhibitions. Cut your coat according to your cloth. Baseless tours of councillors  must be banned. Corruption should also be done away with.

Sumesh Kumar Badhwar, Mohali

Chandigarh