CHENNAI: The Tamil Nadu government on Saturday announced effecting an across-the-board revision in property tax to mop up revenue for local bodies, proposing up to 150 per cent increase, but asserted the rates were lesser than many other states.
The main opposition AIADMK lashed out at the move, saying this was only a “trailer” and that more “bumper prizes were in store” for the people for electing its rival, the DMK, in the elections.
DMK ally Congress also opposed the decision, saying it would further burden the people in the wake of the rising fuel prices and called for a re-think on the mode of its implementation. Another ally of the DMK, CPI (M), sought a rollback of the revision.
Municipal Administration Minister K N Nehru told reporters in New Delhi that the tax revision was effected in line with the 15th Finance Commission guidelines and that central funds would be made available only if it was done.
According to an official release here, a number of reasons, including a manifold increase in inflation over the years, spurred the decision to effect the increase and there was a dip in the civic bodies’ share of own revenue.
To implement the property tax revision, four slabs have been introduced to determine the area of the property. In Chennai, the property tax revision for residential buildings in core area was 50 per cent for those below 600 sq ft, 75 per cent for 600-1,200 sq ft and 100 per cent for 1,201-1,800 sq ft, the release said.
The rate has been revised to 150 per cent for those above 1,801 sq ft. Rates have also been revised in areas coming under other civic bodies including municipalities while the same is the case with commercal structures and buildings housing educational institutions.
Leader of Opposition in the state Assembly, K Palaniswami targetted the DMK government for effecting a hike in the property tax.
He said the DMK government which “refused to give the Pongal special (cash) assistance to people as a reward for choosing it in the Assembly polls, has now gifted them with 150 per cent property tax hike for electing the party in the (recent) civic polls”. “This property tax hike is just a trailer. In the coming days, more bumper prizes are in store for the people,” the AIADMK joint coordinator, also former chief minister, said in a series of tweets.
Tax revision for residential buildings in Chennai
In Chennai, the property tax revision for residential buildings in core area was 50 per cent for those below 600 sq ft, 75 per cent for 600-1,200 sq ft and 100 per cent for 1,201-1,800 sq ft, the release said.