CHENNAI: The State government has withheld its revised property tax, allowing property owners to continue paying taxes at the pre-revision rates. It has also constituted a committee to examine representations from various quarters on the revised property tax rates.
According to a GO issued by the Municipal Administration and Water Supply Department, the revised tax rates, which were in effect since April 2018, will be withheld until the committee submits its report and a final decision is taken.
The four-member committee comprises the Principal Secretary to Government, Finance (Expenditure) Department, as its Chairman; Commissioner of Municipal Administration as its Member/Convener; Director of Town Panchayats and Commissioner of Greater Chennai Corporation as members.
Municipal Administration Minister SP Velumani told reporters on Tuesday that those who already paid the revised tax would be compensated.
“WE had received several representations and objections to the revised property tax rates after which it was announced in the Assembly that a committee will be formed. However, we continued to receive complaints and so we have taken this decision,” Minister SP Velumani said.
Adding to what he called a ‘good news’ for property owners in the State, Velumani said although there was no deadline set for the committee to submit its report, it would be done as soon as possible.
It had been decided last year that residential buildings may face up to a 50% increase in property tax and commercial buildings, up to a 100%. This move was opposed by various residential welfare organisations which claimed they had to pay exorbitant taxes.
The Commissioner of Municipal Administration, Commissioner of GCC and the Director of Town Panchayats had requested the formation of a committee to examine the issues relating to the general revision of property tax in all the urban local bodies and the issue of rationalization of property tax in the added areas based on re-measurement .