CHENNAI: Owners of houses between 600 sq ft and 1,200 sq ft in core areas of Chennai will have to shell out 75 per cent more as property tax, while the hike would be 50 per cent more from the existing tax rate for houses in extended areas. As per an order that came into effect on April 1, tax rates have been hiked under three slabs — 50 per cent, 75 per cent and 100 per cent — for houses up to 600 sq.ft, 600 sq.ft to 1,200 sq.ft, and 1,200 sq.ft to 1,800 sq.ft in core areas of Chennai while it would be 25 per cent, 50 per cent and 75 per cent in extended areas, respectively.
A top official told TNIE that the total revenue generated by hiking property tax is expected to be around Rs 1,750 crore per year. Mayor R Priya said tax rates have not been increased for several years in Chennai and the revision will help improve infrastructure facilities in the city to serve the population that’s increasing by the day.
VS Jayaraman of T Nagar Residents’ Welfare Association said the corporation should first collect all pending tax dues. “The corporation should focus on collection instead of revision,” he said. He also questioned if the four-member committee formed to sort out issues in revision received any suggestions from resident welfare associations.
Many residents also cited the DMK’s election manifesto that said property taxes will not be hiked until the economic slowdown caused by Covid-19 ends. “Property tax revision should not have been done for at least a year as people have been suffering from job losses and increase in prices of commodities,” said Sriram, a resident of Alandur.
In 2019, the government had increased the tax rates by up to 50 per cent for residential buildings and 100 per cent for commercial buildings. But the order was kept in abeyance due to opposition from residents and traders. Later, a four-member panel was formed to examine issues related to tax revision.
“Considering that the government has taken a logical step in differentiating between core city and outskirts, we hope they will also apply the logic to differentiate between those with water and sewage connections and those without them,” said Harsha Koda of federation of OMR resident associations.