CHENNAI, Tamil Nadu: The Government of Tamil Nadu has increased the property tax rate in many corporations, municipalities, and panchayats. The tax hike lies in the range of 25-150 per cent, informed the state officials. The government has been arguing that even after increasing property tax, the tax is still lower than in metro cities.
After the increased tax rate, in Greater Chennai Corporation, 50 per cent property tax will be charged for 600 square feet (sq ft) of area. For an area ranging between 600-1200 sq ft, 75 per cent property tax will be charged, while 100 per cent will be charged for an area ranging between 1201-1800 sq ft, and for an area above 1800 sq ft, 150 per cent of tax will be charged.
The government has been saying that the latest revision in the property tax is in line with the recommendation of the 15th Finance Commission. In favour of its decision, the government has been saying that though inflation and other economic indicators have improved, the property tax has remained the same for all these years. Due to this, the share of its own tax revenue of the civic body has declined significantly. At the same time, revenue expenditure has increased several times, because of which the corporation’s financial troubles deepened.