Chandigarh, April 12: Chandigarh Mayor Harpreet Kaur Babla on Friday urged the Union Territory administration to immediately withhold the proposed hike in property tax, calling it unprecedented and unjustified, and demanded a financial inquiry into the ongoing fiscal distress of the Municipal Corporation (MC).
In a letter addressed to UT Chief Secretary Rajeev Verma, Babla stated that the proposed hike—nearly threefold for residential properties and double for commercial ones—has been introduced without consulting the elected councillors. “This move has no parallel in the city’s history,” she wrote. “Taking such a major decision unilaterally undermines the democratic process and the authority of the elected representatives.”
Babla noted that the civic body is already struggling with a severe financial crunch, which has hampered its ability to deliver essential services. “The corporation is currently suffering from a severe financial crunch, which has significantly impacted its ability to serve the public effectively,” she said, requesting an inquiry into the causes of the crisis and the identification of those responsible.
She further alleged that the Chandigarh administration has failed to allocate adequate funds to the civic body based on its actual needs. “Under these circumstances, imposing an additional burden on residents through steep taxes is not only unfair but also insensitive,” the mayor added.
Babla asked the chief secretary to defer the implementation of the tax hike until discussions are held with Punjab Governor and UT Administrator Gulab Chand Kataria and the elected members of the MC. “The interests of the citizens of Chandigarh must remain our top priority,” she noted.
Property tax in Chandigarh was first introduced in 2004 at 3% of the annual rateable value (ARV) for commercial, industrial and institutional properties. It was extended to residential buildings in 2015. Despite inflation and mounting expenses, the rates remained unchanged for nearly a decade.
As per the latest notification, the tax on residential properties will increase to 9% of ARV—three times the current rate—while commercial and industrial rates will rise to 6%, double the existing rate.
