file photo Chennai: The Greater Chennai Corporation ,gcc) 6% accepted property tax increase Despite strong protests and walkout of councilors on Friday AIADMKVCK, CPI and CPI(M).
The resolution passed in the council by Mayor R Priya is expected to generate an additional Rs 105 crore annually for the civic body, adding to the Rs 1,750 crore currently collected from 13 lakh property bills.
The last major increase was in 2022 when the tax increased from 50% to 150%. With current increases, a home that pays property tax Out of 7,000, 400 more will have to be paid.
The corporation invoked Rule 264(2) of the Tamil Nadu Urban Local Bodies Rules, 2023, which provides for an automatic annual 6% increase or an amount based on the growth rate of the Gross State Domestic Product (GSDP) of the state in the last five years – whichever is , allows for. is higher. Opposition councilors strongly criticized it. However, Deputy Mayor Mahesh Kumar defended the move, saying, “The Central Finance Commission has mandated a 6% increase in property tax collection for us to get the grant.”
The Finance Commission says urban local bodies will have to show annual property tax increase in line with the state’s GSDP growth rate or an increase of six per cent, whichever is higher.
While this could be achieved through reassessment, addressing building violations, ensuring compliance and aggressively recovering dues, the GCC increased property taxes. “If we do a comprehensive survey of the city’s properties, we can achieve development without increasing rates. Our revenue officials need to focus on big institutions like marriage halls, educational institutions and major enterprises,” Kumar said.
AIADMK councilor Karthik Kuppan said the party was planning to oppose the hike. “The DMK government blames the Central government for everything, but the hike could have been avoided. There are many ways to show the increase in property tax without burdening residents.” VCK councilor G Gopinath also expressed concern.
“This increase will hurt the common people, especially after the recent electricity tariff hike. Why not target properties, industries and businesses larger than 2,500 square feet?” he asked. Congress councilor Shiva Rajasekharan also expressed the same sentiment and urged GCC to drop the plan.
