While the Standing Committee’s budget did not propose any new taxes or increases in existing levies, a proposal to hike property tax by around 10% has been placed on the agenda for the committee’s meeting scheduled immediately after the budget session.
According to the proposal, the revision is expected to generate an additional Rs 15.42 crore in annual property tax revenue for the Nagpur Municipal Corporation (NMC).
The Property Tax Department has submitted the proposal as part of its annual exercise to revise tax rates. It remains to be seen whether Standing Committee Chairperson Shivani Dani approves the proposal or defers it. Dani had earlier maintained that the budget did not impose any additional tax burden on the city’s residents.
Under the proposal, property tax rates for the next financial year are to be approved by the Standing Committee under Section 99 of the Maharashtra Municipal Corporation Act, which governs the determination of tax rates. As per the provisions, the approval process should have been completed in February. However, the Standing Committee’s budget itself was presented later than usual. Experts say that if the proposal is approved, the revised rates could be incorporated into the next property tax bills and recovered accordingly.
For the financial year 2026-27, the general tax rate has been proposed to increase across different annual rental value slabs from 14% to 15.6%, 18% to 20%, 22% to 24.5%, 26% to 30%, and 30% to 34.4%. The sewerage benefit tax has been proposed to be increased from 1% to 2%, while the fire tax is also proposed to rise from 1% to 2%.
The department estimates that the revisions would result in an overall increase of nearly 10% in property tax collections. However, the proposal does not recommend any changes to the State Government’s education tax, employment guarantee tax, or the tax levied on large residential buildings.
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