Chandigarh Property Tax Rollback 2025 – Relief for Residents

Chandigarh Property Tax Rollback: Chandigarh Administration rolls back steep property tax hike after protests. Residential tax cut from 3x to 2x, commercial tax trimmed to 5%. Get full details.

Chandigarh, April 23, 2025 – In a significant development that affects thousands of homeowners and business owners in the city, the Chandigarh Administration has partially rolled back the recent property tax hike, following intense criticism from political parties, residents, and trade associations.

Originally notified on March 31, the property tax rates for residential buildings were increased threefold, while those for commercial, industrial, and institutional properties were raised to 6% of the Annual Rateable Value (ARV) — a move that triggered widespread protests across Chandigarh.

Rollback Details: What’s Changed?

Amid mounting pressure, the Administration has revised the tax structure:

• Residential Property Tax: Reduced from 3 times the previous rate to 2 times.
• Commercial, Industrial, and Institutional Property Tax: Cut from 6% to 5% of the ARV.

This rollback comes after a wave of discontent swept through the city, with residents’ welfare associations, traders, and even BJP councillors expressing their disapproval. The protest peaked when BJP councillors threatened mass resignations, and the Municipal Corporation General House rejected the tax proposal in its February 17 meeting.

Public Pressure Wins the Day

UT Administrator and Punjab Governor Gulab Chand Kataria reportedly held a series of high-level meetings with BJP leaders, councillors, and city stakeholders. The result: a rare policy reversal that highlights the strength of public sentiment in shaping governance.

Chandigarh Mayor Harpreet Kaur Babla, expressing gratitude, said, “This is a victory for the people of Chandigarh. The rollback would not have been possible without the tireless efforts of the BJP, which stood with the citizens and took up the matter at all levels.”

Congress, AAP Demand Full Rollback

While the rollback has been welcomed in some quarters, opposition parties remain unimpressed.

Manish Tewari, MP from Chandigarh, lashed out at the administration, calling the property tax hike “arbitrary and undemocratic.” He accused the Administration of bypassing the General House and House Tax Committee and demanded a complete rollback. “Thirty percent of the Union budget allocation to the UT should automatically go to the Municipal Corporation,” he added, promising to take up the matter with INDIA alliance partners.

Echoing similar sentiments, AAP councillor Jaswinder Kaur termed the rollback “an eyewash” and vowed continued resistance until the entire hike is repealed.

Why It Matters to You

If you own property in Chandigarh, this rollback offers some financial relief, but it may not be enough for many. While residential owners face a slightly reduced burden, commercial property holders are still grappling with a significant hike.

Expert Opinion: What’s Next?

Urban policy experts believe the move reflects the Administration’s need to balance revenue generation with citizen welfare. However, the lack of transparency and public consultation remains a critical concern.

With elections approaching and public sentiment at an all-time high, the issue of property tax in Chandigarh is far from over. Political observers predict more negotiations — and possibly, further revisions — in the near future.