CHENNAI: The Madras High Court has upheld the government order to increase property tax in Coimbatore and Chennai but said the new tax slabs will only be operative from April 1, 2023. The court was hearing petitions from Coimbatore and Chennai challenging the G.O. and the Chennai civic body’s Council Resolution giving it effect.
The single bench of Justice Anita Sumanth, dismissing the petitions in an order dated December 23, 2022, set aside the Property tax General Revision Notices 2022-23, from April 1, 2022, terming them erroneous and absurd. She said remittance of property tax for every half year means the 15th of the first month in that half-year, ie, April 15 and by October 15 of the year concerned.
“The Council Resolutions approving the enhancement of rates was passed only on May 30, 2022 and May 26, 2022, (so) the amendment for the first half year for which the last date for payment had already expired by then, has necessarily to be set aside,” she said.
‘Corpns to ensure websites are robust’
The judge directed the Corporations to ensure their websites are robust and grievance mechanisms are put in place to enable property tax assesses to seek clarifications with regard to any aspect of the same. The judge added that if petitioners have settled amounts to be paid, they shall continue to do so in line with the newly upheld amendments.
Rejecting the objection to the slab rate proposed in property tax, the judge observed that even assuming that the fixation of the slab has been done for the first time, the policy has only sought to take into account varying economic strata within the tax base and their is nothing untoward in it.
“The impugned Government Order cannot be considered as a diktat. It does precede the council resolutions and is couched in affirmative terms, indicating that changes are strongly urged in the property tax regime. However, it advises, rather urges, that the Corporations take note of, and address the issues raised effectively, in the best interests of the State or District,” the judge observed. She observed the GO, Council Resolution and notification do make reference to the recommendations of the Central Finance Commission.