The Hindu : Front Page : Corporation cuts property tax hike

Online edition of India's National Newspaper
Tuesday, Jul 01, 2008
ePaper | Mobile/PDA Version

Front Page

Front Page

Corporation cuts property tax hike

Special Correspondent

PHOTO: R. M. RAJARATHINAM

UPSET: Opposition party councillors walking out of the Corporation meeting in Tiruchi on Monday. —

TIRUCHI: Bowing to popular demand from elected representatives and residents’ welfare organisations, the Tiruchi Corporation Council has reduced the quantum of hike in property tax, which is to be revised with effect from April 1, 2008.

After a brief, but noisy, discussion at an urgent meeting here on Monday, the Council decided to restrict the maximum tax hike to 20 per cent (over the existing tax) for residential buildings, 75 per cent for industrial buildings and 80 per cent for commercial buildings. However, the basic value for properties in different parts of the city, already fixed by the Corporation, would remain unchanged. The basic value would form the basis for the tax calculation.

The Corporation had previously fixed the hike at 25 per cent for residential buildings, 100 per cent for industrial buildings and 150 per cent for commercial buildings, the maximum limit stipulated by the government.

About 1,36,452 residential property owners, 229 industrial assessments and 10,022 commercial assessments in the city would benefit from the Council’s decision.

Opposition All India Anna Dravida Munnetra Kazhagam, Marumalarchi Dravida Munnetra Kazhagam and the Desiya Murpokku Dravida Kazhagam members staged a walk-out demanding that the tax revision be put on hold in the wake of the rise in the prices of essential commodities and petroleum products.

Some members of the Congress, Dravida Munnetra Kazhagam and the MGR Kazhagam also pleaded for putting the revision in abeyance. Jerome Arockiaraj of the Congress and a few other DMK members urged the Mayor to explore other means for increasing revenue.

The decision comes after a clarification order issued by the Department of Municipal Administration allowing to the urban local bodies to finalise the tax rates, within the prescribed ceilings, depending on their financial position. Mayor Sarubala R.Tondaiman, who was in the chair, observed that the Corporation has to take into account the funds required for debt servicing, future infrastructure development and improvement to basic amenities.

Commissioner T.T.Balsamy clarified that the reduction in the levy would not affect the tax computing process already under way. The Corporation had already collected self-assessment forms from a majority of property owners and they would soon be issued the demand notices as per the revised tax rates fixed by the Council.

Printer friendly page
Send this article to Friends by E-Mail

Front Page