Decades-long Howrah Bridge tax dispute settled; KMC to gain ₹28 crore annually

A long-standing dispute between the Kolkata Municipal Corporation (KMC) and the Syama Prasad Mookerjee Port Trust over Howrah Bridge usage and property tax payments has finally been resolved. Under a newly agreed revenue-sharing arrangement, the civic body will pay the Port Trust ₹4 crore annually for the use of the iconic bridge, while receiving ₹32 crore in property tax from the port authority.

The agreement marks the end of a decades-long financial and administrative issue between the two institutions. The Howrah Bridge, owned by the Port Trust, serves as a crucial link between Kolkata and Howrah and is used daily by millions of commuters. Under provisions of the Calcutta Port Act, 1890, the municipal corporation is required to pay a usage fee for the bridge.

Kolkata Mayor Firhad Hakim confirmed the development and said the new arrangement was reached after extensive discussions between the two sides. Previously, the Port Trust was liable to pay around ₹5.76 crore annually in property tax, but after deducting the charges related to the bridge, the civic body received only about ₹3.5 crore.

A special committee formed by the mayor reassessed the Port Trust’s properties across the city and evaluated their current rental values. The assessment indicated that the revenue potential from these properties could reach nearly ₹400 crore annually, prompting negotiations for a revised tax structure.

Following multiple rounds of discussions, both sides agreed to implement the new financial arrangement from the 2025–26 financial year. Even after paying ₹4 crore for the bridge usage, KMC will receive about ₹28 crore more annually, significantly strengthening the civic body’s financial position.