Nagpur: In a decision that is bound to ignite anger among thousands of already burdened property owners, the Nagpur Municipal Corporation (NMC) has moved to tighten the tax noose. Municipal Commissioner Abhijeet Chaudhari has approved a proposal to revise property tax rates, clearing the path for a 10% hike in the general tax component across categories, a report in a local daily said.
The proposal, which will now be placed before the Standing Committee and later the general body for final approval, does not stop at a mere 10% increase. It also seeks to double several auxiliary levies, including fire tax, tree cess, education cess, streetlight tax and water tax, from 1% to 2%, effectively compounding the financial blow to citizens.
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If cleared, the revised structure will significantly raise the burden on property holders. Properties with an Annual Letting Value (ALV) of Re 1 to Rs 2,000 will see tax rise from 14% to 15%. For ALV between Rs 2,001 and Rs 5,000, rates will climb from 18% to 20%. The Rs 5,001–20,000 slab will jump from 22% to 24%. The Rs 20,001–50,000 category faces a steeper spike from 26% to 30%, while properties with ALV above Rs 50,000 will be hit the hardest, from 30% to a staggering 34.4%, the report added.
Officials pointed out that the base block rate used for calculating monthly rental value has remained unchanged since March 4, 2015, when it was fixed under Resolution No. 72. At that time, the general body had authorised the Commissioner to increase the block rate by up to 30%.
In fact, the department initially pushed for the full 30% hike, a move that could have generated an estimated Rs 140 crore annually for the cash-strapped civic body. However, amid fears of massive public outrage and affordability concerns, the administration reportedly scaled it down to 10%.
Even so, the proposed revision is expected to significantly swell NMC’s coffers at a time when expenditure pressures are mounting, but at the direct cost of Nagpur’s taxpayers. All eyes are now on the Standing Committee, whose decision will determine whether this sweeping tax escalation becomes a harsh reality for the city’s property owners.
