Living in Shimla gets costlier as debt-ridden Himachal govt substantially hikes charges for essential services

In a move that is expected to increase the cost of living in Shimla, the Himachal Pradesh government has announced a hike in the charges for several essential services starting from April 1 (2025).

These hikes come as the state, burdened with a mounting debt of over Rs 1 lakh crore, seeks to address its financial challenges. However, with limited prospects for revenue growth, the state is turning to citizens to help cover its rising expenses.

Property taxes and waste collection fee to rise

One of the most notable changes is the increase in property taxes within Shimla. Starting from April 1, property owners will see their taxes rise by 6 to 7%, affecting approximately 31,900 building owners in the city.

The Shimla Municipal Corporation has yet to provide precise details on the exact percentage of increase, but the new rates will be enforced for the upcoming financial year.

Additionally, domestic waste collection fees have also been revised. Residents will now have to pay Rs 142, up from the previous Rs 129. Commercial and institutional sectors will face a 10% increase in their charges as well. These new waste collection rates will be reflected in the bills issued in May.

Increase in fees for birth and death certificates

In another move to bolster the state’s revenue, the fees for obtaining birth and death certificates from the Shimla Municipal Corporation will increase drastically, from a nominal Rs 5 to Rs 50.

The cost of correcting these certificates will also see a hike, from Rs 10 to Rs 50. These changes align with central government rates, and the certificates will now be available online for greater convenience.

Water bills expected to rise

In addition to the changes in property and waste management fees, the Himachal Pradesh government is also planning to raise water rates by up to 10%.

While the official notification for this hike is still pending, it is expected to be implemented soon, further straining household budgets in the state capital.

Growing debt and stagnant revenue

The hikes in essential service charges come amid growing financial strain on the state government. The Himachal Pradesh government’s debt has crossed a staggering Rs 1 lakh crore, putting immense pressure on its budget.

Despite this, the state does not foresee a significant increase in revenue in the near future, forcing it to turn to hikes in charges for essential services as a means of balancing the books.

Impact on residents and travellers

The cumulative impact of these price hikes is expected to significantly increase the cost of living in Shimla, affecting both residents and visitors to the state.
With property taxes, utility bills and essential service fees all set to rise, Shimla is becoming an increasingly expensive city to live in

Sunil Chadha