Residents of Hubballi-Dharwad are upset over a sudden property tax hike that has come as a shock. While the Hubballi-Dharwad Municipal Corporation (HDMC) claims the property tax was only increased by 3%, people are receiving tax challans with increases between 60% and 100%. This large jump is due to steep hikes in additional charges like Solid Waste Management (SWM) cess and a new Underground Drainage (UGD) cess.
There was also a delay in generating tax challans, leaving many taxpayers confused and frustrated. According to DM Shanbhag, president of the Hubballi-Dharwad Citizens Forum, the HDMC is not being transparent. He said that although HDMC claims the hike is just 3%, they are collecting this increased amount from 2023-24 and are now adding penalties for two years. Residents who have already paid their taxes and cess until 2024-25 are still being shown arrears in the new challans.
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Vasant Ladawa, former president of the Karnataka Chamber of Commerce and Industry (KCCI) and a Congress leader, also criticized the move. He said, “Earlier, SWM cess was Rs 50 per month; now it’s Rs 100. UGD cess is being collected even though drainage work hasn’t started in many areas.” He also said that there has been no proper classification of properties or public consultation before increasing the charges. He demanded that HDMC should explain clearly why the property tax has doubled.
Ladawa added that if the state government has reduced its funding or forced HDMC to increase taxes, this should be shared with the public.
Mayor Ramappa Badiger clarified that the property tax hike is only 3%, although the government has allowed up to a 5% increase. He said that the new tax is based on the 2019 guideline value from the sub-registrar’s office, as per 2023 rules. He also said that an annual SWM cess of Rs 1,200 and a UGD cess of Rs 600 is being added, as instructed by the government.
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The Mayor admitted that the government only gives 80% of the approved funds and expects the rest to be raised by HDMC through sources like property tax. “We were told to arrange Rs 20 crore from our own funds to implement the 7th Pay Commission. Even contract employee salaries have to come from collected taxes,” he said. Due to this pressure, HDMC is facing a financial crisis.
In summary, citizens of Hubballi-Dharwad are protesting against the sudden and unexpected property tax hike, especially due to the added cess and lack of proper communication from HDMC.
