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The Chandigarh Municipal Corporation (MC) has begun distributing property tax bills for the current financial year, incorporating revised rates that significantly increase the tax burden on residents and businesses. The residential property tax has been tripled, while commercial rates have doubled as per the Chandigarh Administration's mandate. Around 1.42 lakh property owners are expected to receive these bills. Taxpayers can avail of rebates of 20% for residential and 10% for commercial properties if dues are cleared in April and May. Delayed payments will attract penalties and interest. Despite assurances from the ruling party, no relief on the revised rates has been granted.
The Chandigarh Municipal Corporation (MC) has initiated the process of distributing property tax bills for the ongoing financial year, reflecting significantly revised tax rates. The new rates, approved by the Chandigarh Administration, have increased property tax for residential units threefold and for commercial units twofold. Advertisement
Earlier this month, the MC first dispatched bills to various government-owned establishments. Following that, the focus shifted to private property owners, including both residential and commercial categories, covering a total of approximately 1.42 lakh properties across the city.
This time, instead of relying on postal services as in previous years, the MC has deployed its staff to ensure faster and more direct delivery of tax bills. The civic body has set a target to complete this exercise within a week to ten days. The move is aimed at enabling citizens to take advantage of early payment rebates.
To incentivise prompt compliance, the MC is offering a 20% rebate on residential properties and a 10% rebate on commercial properties, provided payments are made within the months of April and May. However, taxpayers who miss this window will face a 25% penalty on the due amount and an annual interest of 12%, making delays significantly costlier.
Despite several public assurances by the ruling Bharatiya Janata Party (BJP) that efforts would be made to have the revised rates reduced or rationalised, no relief has been granted so far. The party had earlier indicated it was in talks with the UT administration to address concerns raised by residents and traders, but no outcome has materialized.
So far, the MC has collected approximately INR 2 crore in property taxes since the beginning of this month, indicating a moderate level of compliance amid the new tax structure.
In past years, Chandigarh's property tax system had drawn criticism for being inconsistently enforced and inefficiently collected. The latest move, although unpopular among many property owners, is part of a broader strategy to enhance municipal revenue and bring tax collection in line with updated administrative norms.
As the deadline for rebates nears, the response from residents and commercial entities will likely shape future discussions around taxation in the city and determine the success of this fiscal approach.
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