Chandigarh mayor urges chief secy to increase MC’s share in cow cess

Chandigarh MC, during the financial year 2022-23, has received an amount of approximately ₹24 crore from the excise department as cow cess, whereas the amount was reduced to ₹7.49 crore during the year 2023-24, which shows that the rates of cow cess have been slashed drastically.

City mayor Harpreet Kaur Babla on Tuesday met chief secretary Rajeev Verma to discuss the financial state of the Chandigarh municipal corporation (MC), and requested him to reconcile the civic body’s share in cow cess, being imposed on liquor by the excise and taxation department.

Babla pointed out that in 2020, the UT administration had passed a notification approving a specific rate of cow cess to be imposed on liquor sales. However, the excise and taxation department later reduced this cess, resulting in a decline in revenue for the MC. (HT File)

Babla pointed out that in 2020, the UT administration had passed a notification approving a specific rate of cow cess to be imposed on liquor sales. However, the excise and taxation department later reduced this cess, resulting in a decline in revenue for the MC.

MC, during the financial year 2022-23, has received an amount of approximately ₹24 crore from the excise department as cow cess, whereas the amount was reduced to ₹7.49 crore during the year 2023-24, which shows that the rates of cow cess have been slashed drastically. In this year, upto February 16, 2025, only ₹4.62 crore have been received, whereas the expenditure under this head was around ₹8.68 crore during 2024-25 (upto January 31, 2025). Similarly, during the financial year 2023-24, against a receipt of ₹7.49 crore, the expenditure was ₹10.83 crore under the head cow fee. Notably, the MC can use the cow cess for the upkeep of stray cows and other animal welfare initiatives in Chandigarh.

The mayor requested the chief secretary to reinstate or increase the cow cess to the levels specified in the 2020 notification.

‘Help MC in strengthening finances’

Mayor urged the chief secretary to support the MC in securing additional funding from the Centre as well as Chandigarh administration and to expedite pending financial allocations from the administration.

Mayor further raised the issue of non-deposit of service tax (property tax) by the engineering department of Chandigarh administration on commercial and residential buildings. The service tax amounting to ₹16.35 crore on commercial buildings is due whereas tax amounting to ₹65.78 lakh on residential buildings remains unpaid to MC.

Chief secretary Rajiv Verma, assured the mayor that the administration would provide all possible support to address the financial issues.