HDMC retracts UGD user fee and SWM cess after protests

Hubballi

Following strong protests from the public and business community, the Hubli-Dharwad Municipal Corporation (HDMC) has decided to cancel the newly introduced UGD user fee and SWM cess. However, the SWM user fee will still be collected along with the property tax.

The move came after criticism from citizens and trade bodies over the additional financial burden. The Karnataka Chamber of Commerce and Industry (KCCI) had urged residents to delay tax payments until the extra charges were rolled back. The KCCI also expressed concern over a steep increase in property tax.

HDMC officials, including Mayor Ramanna Badiger and Commissioner Rudresh Ghali, met with KCCI representatives led by former president Shankranna Munavalli. During the meeting, the chamber rejected HDMC's offer to reduce the UGD fee by half and demanded complete withdrawal.

Eventually, HDMC agreed to completely remove both the UGD user fee and SWM cess, though the SWM user fee will remain. The corporation also reduced the open site fee to 25 paise per square foot from the earlier 50 paise. These changes will apply from the 2025–26 financial year, with possible revisions later.

Although KCCI welcomed the move, they urged the government to make the changes permanent rather than one-time relief. Munavalli appreciated HDMC’s response but stressed the need for a long-term solution.

Mayor Badiger said the revisions would cost the corporation nearly Rs 25 crore in revenue. The decision will be officially submitted to the government, along with concerns over collecting UGD fees, since 40% of the twin cities still lack proper UGD coverage.