Chennai civic body revokes increase in property taxes

The Greater Chennai Corporation has decided to put on hold the tax revision exercise with immediate effect, following the severe backlash the civic body received from the residential property owners and commercial establishments

The Greater Chennai Corporation has decided to put on hold the tax revision exercise with immediate effect, following the severe backlash the civic body received from the residential property owners and commercial establishments.

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“Several grievance petitions were received from the public over the past few days, requesting a reconsideration of the revision...upon careful examination of the revision and associated grievances raised by the public, has decided to put on hold the tax revision with immediate effect.” it said in a statement.

State minister R Nirmal Kumar also clarified that only ‘reassessment’ of buildings both residential and commercial were taking place and there was no hike in proper taxes. “Property tax has not been hiked anywhere. How is it fair if someone builds a house on a 1 lakh square foot land but pays tax only for 1,000 square foot land” he said, adding that the move also aimed to correct irregularities “during the past 5 years of previous government across all major corporations, including Madurai.”

Seshagiri, a long time resident of Sholinganallur, said he bought a property two years back and the registration documents were obtained after the inspection and assessment.

“The inspector came with a measurement instrument and did the assessment. Now the property tax is increased to 250 per cent from the earlier ₹4,480 for six months to ₹11,330 now.” he said.

Another resident of Tambaram, K Subramaniam claimed that his flat is inside a gated community and the revised property tax was billed at ₹26,000 per year whereas his next door neighbour has to pay only ₹4,000 per year.

Another resident said he has been paying ₹9,000 as property taxes per year but it has been revised to ₹23,000 per year now. “We do not know the exact reason. This is not property tax this is collecting indirect taxes.”, a resident said, after interacting with a corporation official.

Meanwhile, the Dravida Munnetra Kazhagam (DMK) had said on Thursday that the increase in property prices was a massive blow to the people of Chennai.

Former health minister and DMK leader Ma Subramanian said, “Over the past few days, news that has been widely discussed by the people of Chennai is the property tax hike. On behalf of the Greater Chennai Corporation, raising property tax once in a while is a common practice. However, it has never been such a massive blow to the people as this.”