Chandigarh Property Tax May Rise from April 1..

Chandigarh : residents may face a property tax hike starting April 1, as the administration has formed a committee led by the Finance Secretary to evaluate potential increases. The committee has already convened for discussions on new property tax structures after the Municipal Corporation rejected a tax increase proposal during its February 17 meeting. Despite resistance from municipal councilors, officials argue that a tax revision is necessary to improve the city’s financial health.

The proposal previously presented in the Municipal Corporation meeting sought to increase property tax rates for residential and commercial properties from 3% to 12%, with an annual increment of 1% until it reached 15%. However, this proposal was rejected due to strong opposition from elected representatives. Nonetheless, administrative officials, including Chandigarh Administrator Gulab Chand Kataria, have consistently supported increasing property tax to bolster the city’s financial resources.

Sources indicate that once the new tax structure receives official approval, it will be implemented from April 1. The committee is exploring various methodologies to determine the revised tax rates. These include the Capital Value System (CVS), which calculates property tax as a percentage of the market value of a property; the Annual Rental Value System (ARVS), which bases tax calculations on a property’s rental income; and the Unit Area Value System (UAVS), which considers the constructed area per unit price.

Municipal officials argue that a revised tax policy is necessary to enhance Chandigarh’s municipal revenue and support urban development projects. The opposition from local representatives primarily stems from concerns that higher property tax rates may financially burden residents and businesses. However, supporters of the revision stress that a sustainable revenue model is essential for the city’s infrastructure and services.

As discussions continue, Chandigarh residents await the final decision on the potential property tax hike. The committee’s recommendations will determine whether homeowners and commercial property owners will see increased financial obligations. If approved, the changes could have long-term implications for the city’s economic planning and development strategies.