Mandi: The Municipal Corporation Mandi’s recent draft notification, “Property Taxation By-Laws – 2024,” has sparked widespread opposition, led by the Citizen Council Mandi. The proposal, issued through Commissioner’s letter no. 7872-79 on November 1, 2024, outlines a sharp increase in property taxes and invites public objections or suggestions by November 30. The Citizen Council has labelled the hike “unreasonable” and demanded its immediate withdrawal.
In a strongly worded letter dated November 7, 2024, the Citizen Council criticized the draft by-laws as excessive and unwarranted. While a 5% increase in property tax during the corporation’s first term was accepted without resistance, the council argued that a second hike within the same term imposes an undue financial burden on citizens. They highlighted that the proposed changes would affect all sections of society, from low-income families to affluent property owners, and fail to maintain equitable taxation principles.
Key issues have been raised regarding the revised tax structure. The draft introduces higher multipliers compared to the 2022 by-laws and reduces the four-category system of property assessment to just two categories, significantly altering property valuations. Additionally, tax rates for vacant land have surged by over 2000%, creating what the council described as an unsustainable burden for property owners.
The removal of the 10% rebate for timely payments has also been criticized for potentially discouraging compliance and reducing overall revenue. Moreover, the inclusion of newly merged areas in the tax net has drawn significant backlash, as these areas reportedly lack basic infrastructure and services, making the taxation premature and inequitable.
The backlash extends beyond citizens to municipal officials. Reports suggest that the Mayor and several councilors are reluctant to endorse the by-laws, signaling dissent within the administration. This growing discontent has fueled demands for reconsideration.
The Citizen Council has called for an immediate rollback of the proposed hike and urged the Municipal Corporation to adopt a balanced approach. They have recommended deferring taxation in merged areas until adequate infrastructure is developed or the current term concludes.
With the November 30 deadline for public feedback fast approaching, the Municipal Corporation faces mounting pressure to address these concerns. The outcome of this proposal will not only impact the city’s taxpayers but also test the governance and responsiveness of the local administration.
