Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Nashik Municipal Corporation's (NMC) budget for 2025-26 features an outlay of INR 3,053.31 crore, marking an increase from previous years. Property tax hikes for new residential, commercial, and industrial properties, along with tripled development charges, are designed to boost revenue. A revised tax system for rental properties will reduce the financial burden on owners, while mandatory licence fees for shops and industries will bring in additional income. The NMC has significantly reduced its liabilities, allocated funds for transport services and ward development, and plans to establish nine clinics to enhance healthcare access.
The Nashik Municipal Corporation (NMC) recently unveiled its budget for the fiscal year 2025-26, presenting an outlay of INR 3,053.31 crore. The budget introduces a series of measures, including property tax hikes and increased development charges, to strengthen the civic body's revenue stream. Advertisement
For new residential and commercial properties, property taxes will increase by 26%, while taxes for new industrial properties will rise from INR 13.2 per square metre to INR 19.8 per square metre, effective from 1 April 2025. Notably, this is the first property tax hike since April 2018, following a six-year gap. In addition, development charges for developers and builders constructing new properties have been tripled, from INR 105 per square metre to INR 350 per square metre.
Municipal commissioner Manisha Khatri also announced that all shops, commercial establishments, and industries under NMC's jurisdiction will need to obtain mandatory licences and pay fees starting April 2025. This initiative is expected to generate an additional INR 10 crore annually.
The NMC is introducing a revised property tax assessment system for rental properties, offering relief to property owners. Currently, residential rental properties are taxed at double the standard rate, while commercial rental properties are taxed at four times the standard rate. Under the new system, property owners will pay an additional 30% tax on rental properties. For instance, a residential property currently taxed at INR 1,000 incurs INR 2,000 in tax if rented. With the revised system, the tax will reduce to INR 1,300. Similarly, a commercial property taxed at INR 4,000 for being rented will now incur INR 1,300. Property owners will need to register tenant details with the NMC to avail of this benefit.
The budget, presented by chief accounts and finance officer Dattatray Pathrut during a standing committee meeting, was approved by Commissioner Khatri. She projected total receipts for 2025-26 to be INR 3,054.7 crore, including an opening balance of INR 66.3 crore.
Despite the increased budget outlay of INR 3,053.31 crore, up from INR 2,602.45 crore in 2024-25 and INR 2,253.74 crore in 2023-24, no major new projects have been introduced. However, the NMC has reduced its financial liabilities significantly, from INR 550 crore in the previous year to INR 410 crore. This improvement reflects better financial management by the civic body. Revenue projections for 2025-26 include INR 1,583.42 crore from GST grants, INR 256 crore from property taxes, INR 75.22 crore from water taxes, and INR 253 crore from town planning department taxes. These measures align with NMC's ongoing efforts to enhance revenue collections.
For the welfare of residents, the civic body has allocated INR 53.62 crore for ward development funds and INR 80 crore to cover losses in the transport services department. Further, nine Balasaheb Thackeray Aapla Dawakhanas (clinics/polyclinics) will be opened, continuing NMC's initiative to expand healthcare facilities. These clinics are expected to improve access to medical services for the city's residents, addressing gaps in healthcare delivery.
In a conversation with reporters, Commissioner Khatri emphasised that the nominal hike in property taxes was introduced after six years to meet rising expenses. The increase is projected to generate an additional INR 10 crore annually. She explained that taxpayers with rented residential and commercial properties would also benefit from the revised assessment system, easing their financial burden.
The 2025-26 budget allocates INR 1,898.68 crore for revenue expenditure and INR 1,031.25 crore for capital expenditure, with an expected balance of INR 1.39 crore. By balancing increased revenue collection with necessary relief measures, the NMC aims to maintain services and strengthen its financial health.
The NMC's 2025-26 budget reflects a focused approach to revenue generation while addressing key civic concerns. The introduction of higher property taxes and licence fees indicates an emphasis on bolstering financial resources, especially after a six-year gap in tax hikes. Simultaneously, relief measures for rental property owners and the opening of healthcare clinics highlight efforts to support residents. With reduced liabilities and enhanced revenue projections, the NMC is poised to improve services and sustain its financial health in the coming fiscal year.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
