CHENNAI: Greater Chennai Corporation has sought the revision of the upper limit for professional tax, which is now fixed at Rs 2,500 per annum per person, under Article 276 of the Constitution. The proposal for this will be sent through the state government to the centre, so as to enable the city corporation to increase the professional tax levied on the higher income brackets with a half yearly income of Rs 60,000 and above.
Under the provisions available now, the civic body has proposed a 25%-35% hike in professional taxes for those with a half yearly income of Rs 21,000- Rs 30,000, Rs 30,000-Rs 45,000 and Rs 45,000 to Rs 60,000.
In order to increase the tax for those with a half yearly income of Rs 60,001-Rs 75,000 and upwards of Rs 75,000 brackets, the upper limit of Rs 2,500 under article 276 of the Constitution needs to be revised. These brackets are now taxed Rs 1,025 and Rs 1,250 per half year. The city corporation is unable to revise this since further increase would exceed the higher limit of Rs 2,500 per annum.
Article 276 of the Constitution empowers states to levy taxes on professions, trades, callings, and employments. The tax rates are increased once in five years and the taxes were last revised from the first half year of 2018-2019 and is now due for revision under the Tamil Nadu Urban Local Body Rules 2023.
“This is only a proposal and the state government will take a call on the matter. By the proposed revisions, the increase in revenue is expected to be meagre but it will help our overall operations,” said a senior corporation official.
Along with the professional tax, the civic body has also proposed to increase the trade license fee.
“This is being done to improve the corporation’s own source of revenue which will help improve our performance as a whole. We are now collecting around Rs 20 crore in trade license fee and the proposed revisions are expected to increase our revenue by another Rs 15 crore,” said an official.
Under the existing license fees, bakeries for instance, are levied Rs 500 a year for under 500 square feet, Rs 750 for 501 to 1,000 square feet and Rs 3,000 for above 1,000 square feet. This has been revised to Rs 2,000 for up to 1,000 square feet, Rs 5,000 for 1,001 to 5,000 square feet and `10,000 above 5,000 square feet.
The proposed trade licence for various shops range from a minimum of Rs 1,000 to a maximum of Rs 30,000 depending on the size and category.
Meanwhile, the CPM councillors staged a walkout from the meeting to express their opposition to resolution number 37. The resolution, passed during the meeting, involves increasing the professional tax rate for salaries ranging from Rs 21,001 to Rs 60,000.
Councillor of Ward 4, Jayaraman, criticised the decision, arguing that while taxes for those earning above Rs 21,001 were increased, those earning above Rs 60,000 were not subjected to higher taxes. Further, opposing the Union budget, the MDMK and Congress councillors tore up the copies of the budget in the council hall.
CPM stages walkout
CPM councillors staged a walkout from the meeting to express their opposition to resolution number 37. The resolution, passed during the meeting, involves increasing the professional tax rate for salaries ranging from Rs 21,001 to Rs 60,000. Further, opposing the Union government’s budget, the MDMK and Congress councillors tore up the copies of the budget in the corporation council hall