Demanding withholding of the steep hike in property tax, city mayor Harpreet Kaur Babla on Friday also sought a financial inquiry into the fiscal crisis being faced by the municipal corporation (MC).
In a letter to UT chief secretary Rajeev Verma, the mayor stated that the hike would amount to almost triple the current property tax rates — a move never seen before in the history of Chandigarh. This unprecedented proposal had been introduced without any consultation or approval from the elected councillors, she said.
She added, “Taking such a major decision unilaterally undermines the democratic process and the authority of the elected representatives.”
Furthermore, the mayor highlighted the ongoing financial distress faced by MC. “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 immediate and thorough inquiry into the causes of this financial crisis and identification of those responsible.
She said the Chandigarh administration had not been providing sufficient funds to MC as per its actual requirements. Under these circumstances, any additional burden on the public in the form of increased taxes was not only unfair but also insensitive.
{{/usCountry}}She said the Chandigarh administration had not been providing sufficient funds to MC as per its actual requirements. Under these circumstances, any additional burden on the public in the form of increased taxes was not only unfair but also insensitive.
{{/usCountry}}The mayor requested the chief secretary to withhold the implementation of the proposed property tax hike until a detailed discussion was held with Punjab governor and UT administrator Gulab Chand Kataria and the elected body of MC. “The interests of the citizens of Chandigarh must remain our top priority,” she stressed.
It is pertinent to mention that property tax, initially introduced in 2004 at 3% of the annual rateable value (ARV) for commercial, industrial and institutional buildings, was extended to residential properties in 2015. Ever since, despite nearly a decade of inflation and the civic body’s growing financial strain, the rates remained unchanged—until now. According to the administration’s latest notification, residential property tax will now be charged at 9% of ARV— three times the previous rate, while commercial and industrial property tax will rise to 6% of ARV—double the earlier rate.