representative image Madurai: The Madurai Corporation Has declared 6% of assets tax hikeEffective from October 1 for the second half of the financial year. Opposition councilors criticized the decision, arguing that it was implemented without sufficient notice, further burdening taxpayers just a year after the previous increase.
According to corporation officials, ₹230 crore was collected in property tax during the financial year 2023-24, while a target of over ₹260 crore has been set for 2024-25. part of the increase Tamil Nadu Urban Local Bodies Rules2023, which mandates annual property value revisions based on average gross state domestic product (GSDP) increase over the last five years or 6%, whichever is higher, unless there is a general revision.
AIADMK councilor and opposition leader, M Solai RajaCondemning the increase, he said, “During the AIADMK regime, we avoided tax increases for ten years, yet kept the treasury intact. In contrast, in the last 3-4 years, there was a 100% increase in property tax for residential and 100% for commercial properties. There has been an increase of 150%.” years.” He urged the corporation to focus on recovering dues from major defaulters instead of increasing taxes on common citizens and called for reassessment of commercial properties paying residential tax rates.
Defending the hike, Corporation Commissioner Dinesh Kumar said it was in line with similar policies in other cities like Chennai and would generate an additional ₹23 crore in revenue. The recent revaluation of over 3,000 properties added ₹7 crore to the collection. “To receive tax-related funds from the central government under the 15th Central Finance Commission, we have to collect taxes in proportion to GSDP and this increase is necessary to meet that requirement,” the commissioner said.
Despite these measures, the corporation faces challenges such as tax dues, misclassified assets and long-standing litigation. Some of the outstanding are more than 50 years old, complicating collection efforts. A tax appeal committee formed last year is addressing these issues.
To encourage timely payment, the Madurai Corporation has kept tax collection centers open on weekends during the first two months of the financial year and offered a 5% incentive up to ₹5,000 for early taxpayers. Property owners who make payment by October 31 will also get a 5% rebate on taxes for the second half of the 2024-25 financial year.
