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Property tax revision reaches an impasse

S. Sundar

Local bodies await clarification from Government


CM’s announcement has led to this dillydallying

Without much funds, better services cannot be ensured


MADURAI: Entangled in a political controversy, implementation of property tax revision has come to a standstill in many local bodies in the southern districts. Officials are awaiting a clarification from the State Government on the issue.

The Government Order to revise the tax with effect from April 1, 2008, in the range of 25 per cent to 150 per cent, was met with protest from several quarters. Chief Minister M. Karunanidhi’s announcement that the local bodies were free to fix the rate of tax revision has only weakened the determination of the local bodies to increase the tax.

Despite deciding on the issue after convening an all-party councillors’ meeting on two consecutive days, the Madurai Corporation officials could not make their decision public.

“We are waiting for the Government to spell out its clarification,” an official said.

Another official said that it was high time the local bodies revised property tax to meet their ever-rising expenditure.

Even smaller municipalities had improved their services, by way of introducing underground drainage, water supply improvement schemes, upgrading earthen roads with black top, parks, gasifier crematorium and modern slaughter houses, he added.

Major contribution

Though major contribution for these works came from the Centre and State Government, the local bodies were making their contribution in the range of 10 to 30 per cent.

With the State Government agreeing to implement the Central Pay Commission’s recommendations, the salary burden of local bodies would increase manifold.

“Many local bodies will not be able to shoulder it if the property tax is not revised,” the official added.

The surplus budget of Rs. 6.79 crore for the year 2008-09 for Madurai Corporation would not be possible without tax revision.

The Corporation has planned to mobilise additional revenue of Rs. 14.95 crore through tax revision alone. However, if this does not happen, the surplus budget will end up as a deficit one.

The Corporation will have additional infrastructure worth over Rs. 1,000 crore under the Jawaharlal Nehru National Urban Renewal Mission in the next few years. “We require more funds towards maintaining them,” the official said.

The Corporation will require additional funds if it wanted to fill vacancies.

“This tax revision is happening after 10 years. If we are not going to make the best use of it, the local body will not be able to provide better services in the coming years,” he added.

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