Councillors demand reduction in tax slabs fixed by Salem Corporation

Corporation councillors demand tax slab reduction for Salem Corporation areas, passing resolutions for revised rates.

Corporation councillors irrespective of party affiliations have demanded the State government to reduce the tax slabs for the areas in the Corporation limits.

Last year, the Salem Corporation passed a resolution based on the instruction of the Municipal Administration Department to introduce zone-based taxes. Under this, the wards in the Salem Corporation are classified as A, B, and C zones. While zones classified as A will attract more taxes, those classified as C attract less taxes.

As per that proposal, a shop that comes under the zone A category has to pay (base tax) ₹2.25 per square foot of a building, ₹1.75 per square foot for zone classified as B and ₹1.25 per square foot for zone classified as C.

Following the increase in taxes, the public and owners of commercial establishments raised their objections and it was reflected in the council meetings for the past six months. Councillors demanded reduction in the tax slab and passed resolutions at the zonal level and forwarded them to the Corporation.

Based on these recommendations, in the recent council meeting held on May 29, the Corporation brought a resolution revising the tax slab from ₹2.25 to ₹1.75 for A zone, ₹1.75 to ₹1.50 for B, and ₹1.25 to ₹1 for C, and passed this resolution and sent it to the Commissioner of Municipal Administration. But, the councillors demand further reduction in tax rates.

Opposition leader in the Corporation N. Yadhavamoorthy (AIADMK) said that the officials did not classify the areas properly. They classified remote areas in the corporation as zone A. Even places that still lack underground drainage and other facilities are brought under zone A.

A person who paid ₹480 per year for a 1,000-sq-foot building in Ammapet now has to pay ₹2,000. Areas like New Bus Stand, Four Roads, Five Roads, Sarada College Road, and Hasthampatti, where a large number of commercial establishments or malls are situated should come under category A. But, areas that are developing are classified as zone A. The revised slabs brought by the Corporation are still higher and councillors, irrespective of political parties, are demanding further reduction in tax slabs, Mr. Yadhavamoorthy added.