The council's 2015-16 draft budget papers include a proposal to increase the Carr Villa and Lilydale Cemetery plot rates by 15 per cent in 2014-15 and 25 per cent in 2015-16.

It was reported Saturday that people within the sector confirmed the rates were proposed to rise by 25 per cent a year for the next three years.

Tasmanian Ratepayers Association president Lionel Morrell said it was apparent the council had a budgeting issue.

"Launceston is the largest and wealthiest municipality in Tasmania and it cannot balance its books," he said.

"It's a question of their ability to manage the place, it's a question of why they're not increasing cremation prices at the same rate as burials and it's criticising their maintenance standards - there hasn't been enough care taken in maintaining and developing the cemetery for some time."

Launceston City Council general manager Robert Dobrzynski said the council was determined to ensure Carr Villa's financial sustainability.

He said burials carried costs not associated with cremations, including ongoing maintenance.

"The facility is currently running at a loss of $350,000 which is being subsidised by Launceston ratepayers in the rates they pay, despite the facility serving the entire region," he said.

"The City of Launceston commissioned an independent benchmarking study of cemeteries across Tasmania and around Australia which found our fee structure was well below other cemeteries."

Submissions to the draft budget papers will be discussed at a committee meeting on Monday.