IN – Manish Tewari Calls for Rollback of Chandigarh Property Tax and Collector Rate Hikes

CHANDIGARH – In the latest session of the Lok Sabha, Chandigarh Member of Parliament Manish Tewari called for an immediate rollback of the steep property tax and collector rate hikes imposed by the Chandigarh Administration starting April 1, 2025. Tewari emphasized that these increases would severely burden residents and small businesses, urging the central government to increase financial support to the Municipal Corporation (MC) to ease the strain.

Structured, Insightful Body Content:

1. Context & Background – Why is This Happening?
   The Chandigarh Administration recently implemented significant hikes in property taxes and collector rates, starting from April 1, 2025. These measures have raised concerns among residents, traders, and property owners. Tewari’s appeal came in response to these hikes, with the MP questioning the fairness of the new tax rates and calling for a reassessment of the administration’s approach.
2. Impact on Businesses & Individuals – Who is Affected?
   The newly introduced hikes include a 316% increase in collector rates for residential areas in villages and significant hikes for properties in different sectors, ranging from 82% to 128%. Property taxes have also tripled for residential properties and doubled for commercial properties. These changes have sparked widespread opposition, especially from small businesses and property consultants, who fear that the rising costs will make property ownership unaffordable for many residents, particularly in the commercial sector.
3. Government & Expert Reactions – Diverse Perspectives
   Tewari strongly criticized the hikes, highlighting the disparity between Chandigarh’s annual budget of ₹6,100 crore and the much smaller allocation of funds for the Municipal Corporation (MC), which receives only ₹570 crore. According to the Delhi Finance Commission’s guidelines, the MC should be allocated 30% of the city’s total budget, or approximately ₹1,700-₹1,800 crore. The Chandigarh Congress Party also condemned the hike, with local leaders claiming that the steep increases would further burden the common man and businesses.
4. What’s Next? – Future Outlook
   Tewari’s appeal for the rollback of the hikes has sparked a debate in the Lok Sabha, and the pressure is mounting on the central government to respond. The opposition parties have called for an immediate review of the decision, while some stakeholders are hopeful that the Chandigarh Administration might reconsider its stance on the new rates. The final outcome will likely depend on how quickly the central government intervenes to address these concerns.

Data, Quotes & Expert Analysis:
The proposed hikes, which include a fourfold increase in collector rates and a triple increase in residential property taxes, have been met with fierce criticism. Sanjeev Chaddha, president of the Chandigarh Trade Board, argued that the increases would hurt businesses, while Jitendra Singh of the Chandigarh Property Dealers Welfare Association described the move as “dictatorial.” The Congress party also expressed concern, emphasizing that the hikes would make homeownership out of reach for many.

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