Chandigarh admn reduces hiked property tax for current fiscal after public outcry

The Chandigarh Administration notification on the revised property tax rates reads: “In exercise of the powers conferred by sub-section (3) of Section 90 of the Punjab Municipal Corporation Act, 1976 as extended to UT Chandigarh and in partial modification of notification dated March 31, 2025, the Administrator, Union Territory Chandigarh is pleased to allow amendment in the property tax chargeable on commercial, industrial, institutional and residential lands and buildings in Chandigarh to be levied by the Municipal Corporation, Chandigarh under clause (a) of sub-section (1) of Section 90 of the Act.”

The Chandigarh Municipal Corporation (MC) first introduced a 3 per cent property tax on the annual rateable value (ARV) of commercial, industrial and institutional lands and buildings in 2004.

Later, in 2015, the tax was extended to residential properties. Since then, there had been no revision in the rates.
Previously, the administration in its notification had announced the property tax rates effective from April 1, wherein residential property owners would face a threefold increase, while commercial property tax rates were doubled. As per the Administration’s previous notification, commercial and industrial properties would be charged 6 per cent of the annual rateable value (ARV) for 2025-2026, whereas, as per revised rates announced, 5 per cent of the ARV would be charged.

Welcoming the notification, Mayor Harpreet Kaur Babla, said, “The decision brings much-needed relief to the citizens and business community of Chandigarh. We welcome the decision made by the Chandigarh Administration to reduce the increased property tax rates for the assessment year 2025-26.”

“This significant move has been made possible due to the continuous and dedicated efforts of the BJP and ours. We persistently raised the issue of the 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 Chandigarh Administration,” the mayor added.

Chandigarh MP Manish Tewari said, “Property Taxes were levied without any structured consultation with public representatives or the people of Chandigarh acting through their respective Resident Welfare Associations. The tax proposals were never placed before or deliberated by the House Tax Committee or the General House of the Municipal Corporation…This band-aid approach of first levying taxes and rolling them back partially is the antithesis of healthy democratic functioning.

“The fundamental issue is what are the principles or the formula by which funds are devolved by the Chandigarh Administration to the Municipal Corporation. The Congress demands the complete rollback of the property tax levied, and 30 per cent of the funds received by the Chandigarh Administration vide the Union budget must be an automatic pass-through to the Municipal Corporation without any let or hindrance, as is the norm laid down by various Finance Commissions,” Tewari added.

Chandigarh AAP president Vijay Pal said, “We had opposed a three-time hike in the property tax by the Chandigarh Administration with the internal consent of the BJP. Powers invested in representatives of the city councillors were rejected by bureaucrats of the administration, with the hidden support of the ruling party. AAP had to approach the high court against the dictator’s decision. Now, they are fooling people of the City by a marginal reduction in illegally imposed property tax, which is just an eye-wash, the public will revert to their so-called gift at the right opportunity in due course.”

Chandigarh Pradesh Congress Committee president H S Lucky said, “The party demands complete rollback of the increased property tax as it was increased arbitrarily without following the due procedure and against public sentiment. This reduction has also happened because of the sustained pressure built by the Chandigarh Congress and the general public. The BJP and the Chandigarh Administration were on the back foot because of the continuous agitation launched by the Congress.”