CHENNAI: Justifying the decision to hike property tax in urban local bodies across Tamil Nadu, Municipal Administration Minister KN Nehru on Saturday said the tax revision was carried out as per the recommendations of the 15th Finance Commission as mandated by the Union Government.
“The Centre had categorically said if property taxes are not revised by March 31, Rs 15,000 crore grant for local bodies would not be released. This directive is not only for Tamil Nadu but for the entire country. Tax hike in TN was lesser than other States,” the Minister told reporters in New Delhi.
“Last year, over Rs 7,000 crore meant for local bodies was not released since elections were pending for urban local bodies. Taxes have been revised after 24 years in Chennai and 14 years in other areas,” he said. On the rationale behind the hike, the minister said tax revenue in urban local bodies has come down but expenditures have been going up. In 2010-11, property taxes made up 60 per cent of Chennai Corporation’s tax revenue, but it went down to 51 per cent in 2015-16 and 43 per cent in 2020-21, he said.
“Reacting to opposition leader Edappadi K Palaniswami’s criticism that “tax hike was only a trailer and more bumper prizes await people for electing the DMK,” the minister said, “In 2018, the AIADMK regime hiked property tax by 200 per cent. But they did not implement it with an eye on polls. The AIADMK government had proposed an across-the-board hike but the DMK government has proposed lower tax hike for poor and middle-class people.”
Meanwhile, BJP State president K Annamalai took strong exception to the minister’s contention about taxes being hiked. “At no point did the Centre direct the State to hike property tax. Tamil Nadu government should roll back this huge tax hike. The DMK had strongly opposed the AIADMK government’s move to hike tax in 2018. But now the DMK government has doubled the hike,” he said.
The AIADMK demanded an immediate rollback of the tax hike and announced demonstrations at all its district headquarters on April 5.PMK youth wing chief Anbumani Ramadoss too termed the hike as unfair and urged the State to withdraw it.