HDMC Scraps UGD Fee & SWM Cess After Public Outcry; SWM User Fee Remains  

 Hubballi: Facing considerable heat from residents, businesses, and industry groups, the Hubballi-Dharwad Municipal Corporation (HDMC) has decided to hit pause on its newly introduced Underground Drainage (UGD) User Fee and Solid Waste Management (SWM) Cess. However, the separate SWM User Fee is here to stay and will be collected along with property taxes.

This change comes after a wave of public anger erupted when the HDMC initially added these new fees on top of increased property taxes. The move particularly frustrated local trade and industry bodies. The Karnatak Chamber of Commerce and Industry (KCCI) even urged citizens to hold off on paying taxes until the corporation reconsidered the fees and the tax hike.

In response, Mayor Ramanna Badiger, Commissioner Rudresh Ghali, and other council members sat down with KCCI representatives, including past president Shankranna Munavalli, on Monday. The KCCI team stood firm, rejecting an initial offer to simply cut the UGD fee by half and insisting it be scrapped entirely.

Ultimately, they reached a compromise: the UGD User Fee and the SWM Cess will be completely withdrawn for the current 2025-26 financial year. The SWM User Fee will continue, though, which wasn't exactly what the KCCI wanted. As a small concession, the HDMC did agree to lower the SWM fee for open plots from 50 paise to 25 paise per square foot. Officials noted that these decisions could be revisited next year.

Mayor Badiger framed the decision as being in the public's best interest, even though it's expected to cost the corporation about Rs 25 crore in potential revenue. He also pointed out a practical challenge with the UGD fee – roughly 40% of Hubballi-Dharwad isn't even connected to the underground drainage network yet, making collection difficult. The corporation plans to make this decision official at its next general meeting and notify the state government.

Meanwhile, the KCCI isn't entirely satisfied. Shankranna Munavalli expressed appreciation for the rollback but emphasized that the business community wants these fees gone for good, not just suspended for a year. He also highlighted that the core problem of significantly higher property taxes, linked to new government guidance values for property, still needs tackling. Munavalli stated the KCCI plans to take this larger issue, including the introduction of user fees, directly to the state government.

On a related note, the corporation has agreed to push back the deadline for the 5% early property tax payment discount from April 30th to May 20th. Munavalli added that the KCCI is still hoping for an extension to May 31st.