Cash-strapped Chandigarh MC proposes hiked sewage cess to bolster revenue

Chandigarh: As part of revenue generation efforts, the MC has proposed to increase sewage cess for residential and commercial buildings in the city from the existing 20% of water use to 30%.
Saying that the current sewage cess decreased initially from 30% to 25% of the total water usage in July 2023 and later from 25% to 20%, the civic body claimed that with this increase, it would be able to earn around Rs 11 crore revenue annually. The Supplementary agenda in this regard is coming up for discussion and approval in the monthly general house meeting scheduled for Monday.
The agenda item reads, "The sewerage cess reduced from 30% to 25% for the remaining period of the financial year 2023-24 and further reduced to 20% from April 1, 2024, onward. The Municipal Corporation, Chandigarh, is facing a financial crunch at present and with a view to increasing the revenue of sewerage cess, it is proposed that the existing rate @20% of current charges be increased to 30% of water consumption amount for both residential and commercial, including hotels, institutions, and other categories."
It added, "It is also stated that the Municipal Corporation, Chandigarh, will earn additional revenue of about Rs 11 crore per year on account of sewerage cess. The agenda is submitted for consideration and approval for placing the same before the general house meeting of the Municipal Corporation, Chandigarh, for further submission to the secretary, local government department, Chandigarh, for notification of amendment in Chandigarh water supply bye-laws."
Although all political parties, including the BJP, then ruling party in the MC, termed the 30% sewage cess as exorbitant and raised the matter before the then Punjab governor and UT administrator, Chandigarh administration reduced the cess in two phases, in 2021-2022 and 2022-2023.
While there is a possibility of stiff opposition this time too, officials are trying hard to get approval as the agenda item is directly related to the MC's revenue.
Box:
Existing Rate---------------------------------Proposed Rates
@ 20% of current charges----------------1: Residential building @30% of water consumption.
2: Commercial premises @30% of water consumption