Tamil Nadu govt hikes property tax, Palaniswami calls it 'gift by DMK' for recent poll win
India Today
In Chennai corporation, 50% property tax will be charged for areas below 600 sq ft, 75% for 600-1,200 sq ft, 100% for 1,201-1800 sq ft and 150% for those above 1,800 sq ft. AIADMK has criticised the property tax hike, calling it a 'gift by DMK' to people after its recent win in Urban local body polls.
Tamil Nadu government on Saturday increased the property tax in various corporations, municipalities and panchayats to the range of 25-150 per cent. Houses in the core of cities with a built up area of less than 600 square feet (sq ft) will see a 50 per cent rise in property tax.
The government has set different tax slabs. In the core of Chennai city, houses of 600-1200 square feet will see a tax rise by 75 per cent, while houses between 1,201-1,800 sq ft will see a 100 per cent rise. Houses in areas above 1,801 sq ft will see a 150 per cent increase.
In the areas added in 2011 and for areas in other corporations, the tax has increased by 50% for 600 and 1200 sq ft, 75 per cent for 1,201 to 1,800 sqft and by 100 per cent for more than 1,801 sq ft.
According to the notification, there will be a 150 per cent increase in property tax for commercial buildings and industries in the core of Chennai and added areas will see a 100 per cent rise. Educational institutions will see a rise of 100 per cent in Chennai and added areas will see a 75 per cent rise in property tax.
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The rise in property tax, the government said, is to comply with the Centre's norms and seek grants for the state. The official statement said that most people have houses less than 1200 square feet and thus the hike will not have much effect on them. The changes are effective from April 1.
The government argued that rates are still lower than other metro cities. Municipal Corporation Minister KN Nehru said, "New property tax will not affect the poor and middle class and has been designed in this manner. In Chennai, tax on 600 sqft area is Rs 3,240. According to the new slab, it will be Rs 4,860. In Bangalore, the same sq ft area is taxed at Rs 8,660 and in Kolkata, it is Rs 15,984, in Pune it is Rs 14,312 and in Maharashtra, it is Rs 84,583."
