MC House Clears Tax Hike for Govt Properties Too

Former BJP mayor Anup Gupta moves agenda in meeting, questioning why the tax jump was imposed solely on city residents while govt buildings were exempted

- Mandeep Kaur Narula

CHANDIGARH: In a significant move, the BJP-led Chandigarh Municipal Corporation (MC) House on Wednesday approved a proposal to extend the recently implemented property tax hike to government buildings, which had been exempted by the UT administration.

The decision, however, still requires UT approval to come into effect.

On March 31, the UT administration had approved a steep hike in property tax for residential and commercial properties starting April 1, but chose to exempt government-owned buildings from the increased rates.

The decision sparked sharp criticism from city residents and opposition leaders alike, especially given that government buildings collectively owe a staggering ₹250 crore in unpaid property taxes, further straining the cash-strapped MC's finances.

During Wednesday's meeting, former mayor Anup Gupta raised concerns about the fairness of UT's exemption.

"Why was the tax hike imposed solely on city residents while government buildings were exempted? Despite already enjoying a 25% annual rebate on service tax, many of these properties have defaulted on payments, resulting in a massive ₹250 crore in outstanding dues—a significant shortfall in MC's annual revenue," Gupta said.

He proposed that the same tax hike be imposed on government buildings to ensure fairness and boost the city's revenue, while also demanding that the House's decision of revoking the 25% rebate to government buildings be implemented at the earliest.

Gupta's proposal was unanimously supported by BJP councillors, who then proceeded to approve the increased tax rates for government buildings, similar to those imposed on residential and commercial properties.

MC's decision, however, will need UT administration's approval, as is the norm.