Chandigarh approves property tax hike, spares govt-owned properties
Earlier this year, the MC had proposed a fourfold increase in property tax across all categories, estimating an additional revenue of Rs 200 crore annually.
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Committee members Harjeet Singh, Manoj Sonkar and Lakhbir Singh, along with senior MC officials, participated in the session. (File photo)The Chandigarh Administration Monday approved a substantial increase in property tax rates, tripling the tax on residential properties and doubling it on commercial properties. However, government-owned properties have been exempted from this hike.
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.
As per the latest notification from the UT Administration, the property tax on residential properties for the assessment year 2025-26 will be increased to three times the existing rate, amounting to 9 per cent of the ARV. The tax on commercial and industrial properties will now be charged at 6 per cent of the ARV.
Earlier this year, the MC had proposed a fourfold increase in property tax across all categories, estimating an additional revenue of Rs 200 crore annually. The proposal also included a 1 per cent annual increase on commercial properties (capped at 15 per cent) and a 5 per cent annual hike on residential properties. However, the proposal faced opposition from all councillors, regardless of party affiliation, and was ultimately rejected.
MC Commissioner Ambit Kumar defended the proposed increase, citing financial challenges faced by the civic body.
The notification also clarified that properties falling under the category of service charges will continue to be taxed at the existing rate of 3 per cent of the ARV.
This decision to spare government-owned properties from the hike has sparked debate, with critics questioning the rationale behind the exemption amid rising financial pressure on the MC.
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