Chennai, First Published Apr 6, 2022, 12:00 PM IST
In Tamil Nadu, various political party leaders, including DMK alliance leaders, have been vocal in their opposition to the property tax hike.
Property tax increase
The Finance Commission, set up by the Central Government, in its report has stipulated that the property tax should be raised annually in line with the GDP growth of the state to qualify for the subsidy on the recommendation of the Local Bodies Commission from the current year. In this situation, in the absence of any increase in property tax for many years, the share of own revenue in the total revenue of local bodies has been greatly reduced and expenditure has increased many times over.
Therefore, the Government of Tamil Nadu has decided to raise property taxes in municipalities and boroughs in Tamil Nadu. Accordingly, a 25 per cent increase was announced for residential buildings with an area of less than 600 sq. Ft., An increase of 50 per cent for 601 – 1,200 sq. Ft. Residential buildings, an increase of 75 per cent for 1,201- – 1,800 sq. .
Mess
In this connection, the government of Tamil Nadu had stated that the property tax would be increased at a lower percentage for other corporations and municipalities than the Chennai corporation. Especially for buildings in Chennai where the tax is 150 per cent higher, in other cities the property tax is raised to 100 per cent. Even at this rate, people in areas other than Chennai are forced to pay higher taxes. For example, a building in Chennai that raised the property tax by 4,000 rupees in 1998 now has to pay a tax of 10,000 rupees, with a 150 percent tax increase.
Discrimination
However, the building in Coimbatore, which paid a tax of Rs 4,000 in 1998, has been taxed at Rs 8,000 for the last 14 years as the tax was raised by 100 per cent in 2008. For that, now with the 100 percent tax increase, he has been forced to pay 16 thousand rupees. Various organizations have called for an end to this discrimination. For at least a few years, property tax hikes should be halted in cities other than Chennai; Or appeal to other cities to reduce the tax increase accordingly.
Last Updated Apr 6, 2022, 12:00 PM IST