Chennai: Property owners in Chennai may have to pay 30 per cent more as property tax if the state government approves the ‘rationalisation’ proposal by the Greater Chennai corporation.
“The high court had taken up a suo moto hearing on the non-revision of property tax rates in Chennai. Following the intervention of Madras high court, the city corporation has taken steps to increase the tax rates for all properties in Chennai” a senior Chennai corporation official told Deccan Chronicle.
It is learnt that the civic body has proposed to increase the levy by 20 to 35 per cent. “The state government and the high court will have the final say about the extent to which the tax would be hiked. The tax will remain nominal even if the revenue authorities fix a higher slab going by the fact that the tax rates were not revised since 1998,” the official explained.
The civic body is collecting a minimum of 50 paise and a maximum of '2.50 per sq.ft for residential buildings and in the case of commercial establishments; the range is fixed between Rs 3 and Rs 9 per sq.ft. Last fiscal, the corporation collected Rs 695 crore and if the rates were revised the corporation would generate an additional sum of Rs 100 crore.
Extended zones like Ambattur and Alandur are collecting a maximum of Rs 18 for commercial buildings. Core city is collecting a maximum of Rs 9. The Chennai corporation also sent a proposal to fix tax in between Rs 9 and Rs 18 for commercial edifices. “After the ‘rationalisation’ some parts of the city may see a hike in tax rates and other parts especially, the extended zones see a reduction,” the official said.
The top brass attached to the city civic headquarters opined that the new tax rates would come into effect from next financial year and it would not reflect in arrears. “If we choose to collect arrears on the basis of new rates, the property owners will become reluctant to pay the tax,” the official expressed.
The Chennai corporation revenue department has collected Rs 432 crore this financial year up to November 10. “We have a target to collect Rs 700 crore. The tax collection is increased owing to re-assessments done in old buildings. If the tax rates increase, the collection will also increase,” the official added.
