Speculations of enhanced taxes surround upcoming BMC budget meeting

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Speculations of enhanced taxes surround upcoming BMC budget meeting

Monday, 31 March 2025 | Staff Reporter | Bhopal

Speculations surround the agenda for Bhopal’s upcoming budget meeting on April 3, with expectations of a potential increase in property and water taxes—the first hike in the current council’s tenure.

The proposed changes include a 10% rise in water tax, possibly raising monthly bills from Rs 210 to Rs 230-240. This follows a 15% hike three years ago.

Property tax may also rise by 10-15%, boosting the city’s revenue. The budget, totaling Rs 3,353 crore, remains confidential ahead of the meeting.

Four major proposals are expected: an updated water tax, higher property tax, hospital fees based on size, and reduced bulk connection fees. The last water tax hike occurred in March 2022, increasing rates from Rs 180 to Rs 210 per month. Now, over 275,000 connections could face higher charges.

In property tax, the city collects Rs 277 crore annually. The increase aims to strengthen municipal finances amid rising expenses. A proposal to charge private hospitals based on size, rather than beds, may be introduced, alongside a reduced bulk connection fee from Rs 35,000 to Rs 15,000-20,000. The budget will also cover key projects: Rs 40 crore for the Pradhan Mantri Awas Yojana, Rs 10 crore for new colonies, and Rs 5 crore for water infrastructure in underprivileged areas. Additionally, the municipal headquarters’ construction may receive Rs 6.47 crore in extra funds, with Rs 33.27 crore already sanctioned.

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