Chandigarh: Proposed cess put on the back burner
The MC, which had reduced the sewerage cess to 20% last year, was considering raising it back to 30%, a move that would have resulted in higher water bills for residents. However, the proposal quickly turned into a political debate, with AAP and Congress councillors opposing the hike and accusing BJP mayor Harpreet Kaur Babla of introducing an “anti-citizen” tax.
In a setback to the cash-strapped Chandigarh Municipal Corporation (MC), the general House on Monday deferred two key revenue-generating proposals—hiking the sewerage cess and increasing penalties on shopkeepers for encroaching public spaces.
The MC, which had reduced the sewerage cess to 20% last year, was considering raising it back to 30%, a move that would have resulted in higher water bills for residents. However, the proposal quickly turned into a political debate, with AAP and Congress councillors opposing the hike and accusing BJP mayor Harpreet Kaur Babla of introducing an “anti-citizen” tax.
Raising slogans like “mayor of taxes” and “new mayor brings new taxes,” opposition councillors attacked the ruling party for attempting to burden residents. Even BJP councillors distanced themselves from the proposal, forcing the house to defer the agenda.
The sewerage cess charged depends on a consumer’s water bill. For example, a ₹2,500 water bill currently incurs a cess of ₹500 (20% of the bill), making the total ₹3,000. Under the new proposal, the same bill will rise to ₹3,250 due to a ₹750 cess (30% of the bill). With 1.83 lakh water connections in the city, MC hoped to generate an additional ₹11 crore monthly from the increase.
Meanwhile, the MC had also proposed stiffer penalties on shopkeepers for illegally occupying public spaces. Currently, violators face a fine of ₹2,000 for the release of seized articles, but under the plan, the penalty for first-time offenders was to be increased to ₹5,500, while second-time violators would have faced a ₹6,000 fine. A third violation would have led to the permanent seizure and auction of goods.
However, councillors across party lines opposed the move, arguing that it would encourage corruption within the MC’s enforcement wing rather than effectively curbing encroachments. As a result, this proposal too was shelved.
With huge appreciation, the House approved the mayor’s proposal of providing temporary water connections to people living outside lal dora in 22 villages to further bolster MC’s financial position.
The MC has written to the UT administration to increase its share in the cow cess on liquor. MC is now short of cow cess revenue, which has proved to be a stumbling block in cow welfare as expenditure incurred for the upkeep of gaushalas is more than the earnings.