Nagpur: Barely days after assuring citizens that the civic budget carried no fresh tax burden, the Nagpur Municipal Corporation (NMC) is set to consider a proposal that could increase property tax by an average of 10 per cent across the city.

The proposal has been placed before the Standing Committee for its first meeting after the presentation of the civic budget and is scheduled to be taken up on July 10. If approved, the revision is expected to generate an additional Rs 15.42 crore in annual revenue for the cash-strapped municipal body.

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The proposal, submitted by the Property Tax Department as part of the annual tax revision exercise, seeks approval under Section 99 of the Maharashtra Municipal Corporation Act, which empowers the civic body to determine and revise municipal tax rates.

The move has drawn attention because Standing Committee Chairperson Shivani Dani-Wakhare, while presenting the budget on June 27, had maintained that no new taxes had been introduced and that residents would not face any additional financial burden.

Apart from the proposed hike in property tax, the civic administration has also recommended doubling the sewerage benefit tax from 1 per cent to 2 per cent and the fire tax from 1 per cent to 2 per cent. Together, these revisions are expected to result in an overall increase of nearly 10 per cent in property tax collections.

Officials said the annual tax revision proposal is normally cleared in February before the beginning of the new financial year. However, with the Standing Committee budget itself being presented much later than usual, the tax revision was also delayed.

If the proposal receives the committee’s approval, the revised amount is likely to be incorporated into the forthcoming property tax bills, enabling the civic body to recover the increased levy during the current financial year.

The proposal, however, leaves several other levies untouched. There is no recommendation to revise the State Education Cess, Employment Guarantee Cess, or the tax applicable to large residential buildings.

The decision now rests with the Standing Committee, whose approval or rejection of the proposal will determine whether Nagpur residents face a higher property tax burden despite the earlier assurance of a tax-neutral budget.