MP Tewari urges rollback of Chandigarh property tax, collector rate hikes in Lok Sabha

Tewari highlighted that Chandigarh receives ₹6,100 crore annually from the central budget. According to the Delhi Finance Commission’s formula, the MC should receive 30% of this amount, approximately ₹1,700 to ₹1,800 crore. However, the MC is currently allocated only ₹570 crore. He appealed to the central government to adhere to the commission’s guidelines and provide the MC with its due share to alleviate the financial strain on residents.

The recent hikes have sparked widespread opposition from various stakeholders. The Chandigarh Administration has notified an over fourfold increase (316%) in collector rates for residential areas in villages, a 128% hike for properties in Sectors 1 to 12, a 98% increase in Sectors 14 to 37, and an 82% rise in Sector 38 and beyond.

In addition to the collector rate hikes, the administration has approved a threefold increase in property tax on residential properties and doubled the tax on commercial properties. Residential property tax will now be charged at 9% of the Annual Rateable Value (ARV), up from the previous 3%, while commercial and industrial property tax will rise to 6% of ARV, doubling the earlier rate.

Traders and property consultants have voiced strong opposition to these proposals. Sanjeev Chaddha, president of the Chandigarh Trade Board, argued that instead of raising rates, the administration should lower them to support struggling businesses. He criticized the steep hike in commercial property rates, noting that some exceed the market value.

Jitendra Singh, general secretary of the Chandigarh Property Dealers Welfare Association, condemned the hike as a “dictatorial decision” that would make property ownership unattainable for the common man.

The Congress party has also condemned the steep increase in collector rates. Chandigarh Congress president HS Lucky said that purchasing property in Chandigarh was already a significant challenge, and such an exorbitant hike would further erode affordability, making homeownership an even more distant dream for the average citizen.