The Hubballi-Dharwad Municipal Corporation has taken the decision after discussing it with KCCI, various organisations and stakeholders and after considering the pros and cons.
| Photo Credit: KIRAN BAKALE

Following public outrage over indiscriminate tax hike and strong opposition from Karnatak Chamber of Commerce and Industry (KCCI), the Hubballi-Dharwad Municipal Corporation (HDMC) has decided to drop solid waste management cess and underground drainage user charge temporarily.

Hubballi-Dharwad Mayor Ramanna Badiger announced on Monday that the decision to temporarily withdraw them was taken after having discussion on property tax revision with KCCI and various organisations and stakeholders and after considering the pros and cons.

The Mayor said that property tax was imposed as per 2019 guidelines and subsequently, new guidelines were issued during 2023-24, which, however, were not implemented during 2024-25.

“This year, it is being implemented with a revision of 3% for 2025-26,” he clarified.

He further clarified that solid waste management cess has been totally dropped for the year. “As there is pressure to reduce the user charge for vacant sites, it has been reduced from 50 paise to 25 paise per sq ft. For residential property, it is a minimum of ₹600 to a maximum of ₹2,400 and for non-residential and commercial property, it is a minimum of ₹1,800 to a maximum of ₹12,000,” he said.

On underground drainage user charge, which was to be collected from the current fiscal, he said that as it has been pointed out that it will be unscientific to collect the charge as most of the localities lacked the facility, the idea has been dropped now.

To a query, he said that technical staff have been asked to correct the online mistakes while issuing challans.

“Citizens having property in various wards will now be able to pay tax at one zonal office,” he said.

Extended

The Mayor said that the 5% discount offered for payment of property tax has been extended by a month for the benefit of the public.

Replying to a query, Floor Leader Viranna Savadi pointed out that collection of underground drainage cess and user charge is mandatory and any violation may lead to criminal case against the Municipal Commissioner and a notice can be issued to the Mayor.

So, a resolution on collecting underground drainage user charge only after providing the facility will be approved in the general body meeting of the council and then, sent to the government for approval, he said.

Meanwhile, KCCI has welcomed the corporation’s decision on property tax revision.

Addressing presspersons in Hubballi, the former president of KCCI Shankranna Munavalli, incumbent president S.P. Saunshimath and other office-bearers welcomed the decision but objected to the Mayor’s statement regarding the withdrawal of cess as temporary.

KCCI earlier appealed to the general public not to pay property tax till the issue is resolved but following the latest decision, it has now requested them to pay taxes.