Chandigarh MC Achieves Record Property Tax Collection in Just Two Months

A Remarkable Revenue Milestone

In a stunning display of civic efficiency and robust tax compliance, the Chandigarh Municipal Corporation (MC) has collected a staggering ₹62 crore in property tax in just two-and-a-half months—from April 1 to June 20, 2025. This impressive figure already surpasses last year’s total annual collection of ₹60 crore (including arrears), marking a new chapter in the city’s revenue management.

Residential and Commercial Contributions

The collection reflects a balanced and substantial contribution from both residential and commercial sectors. Residential property owners have contributed ₹26.17 crore, while commercial properties have added ₹35.42 crore to the city’s coffers. This surge represents a significant leap from the ₹38.59 crore collected during the same period last year, underscoring the impact of recent policy changes and improved enforcement.

Driving the Surge: Revised Tax Rates

The sharp increase in revenue is largely attributed to the steep revision in property tax rates implemented this fiscal year. Residential property tax has doubled to 6% of the Annual Rateable Value (ARV), up from the previous 3%. Similarly, commercial and industrial property tax rates have been raised to 5% of ARV from the earlier 3%. These changes have not only broadened the tax base but have also ensured a more equitable distribution of civic responsibilities.

A City in Transformation

With approximately 31,007 commercial properties and 1.08 lakh residential properties, Chandigarh is witnessing a transformative shift in its revenue landscape. The revised rates are projected to elevate annual commercial property tax demand from ₹36 crore to ₹60 crore, while residential contributions are expected to jump from ₹9 crore to ₹18 crore. Overall, the civic body anticipates a total property tax revenue of around ₹78 crore this fiscal year—a lifeline for the city’s infrastructure and public services.

Clarity and Adjustments in Tax Billing

“The tax revision was finalized on April 23, with 23 days already passed in the current fiscal,” explained MC officials. “Initially, the UT administration had announced higher rates, and bills were sent accordingly. Any extra amount collected will be adjusted in next year’s bills. The current collection also includes arrears from some properties.” This transparent approach ensures fairness and builds trust among taxpayers.

A Brighter Future for Chandigarh

As Chandigarh’s civic body strengthens its financial foundations, the city stands poised for enhanced development and improved public services. The record property tax collection is not just a number—it’s a testament to the collective commitment of residents, businesses, and the administration to building a more vibrant and sustainable urban future.