The Hindu : Tamil Nadu News : Tirupur Corporation makes out a strong case for tax increase

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Monday, Aug 04, 2008
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Tamil Nadu

Tamil Nadu

Tirupur Corporation makes out a strong case for tax increase

Special Correspondent

AIADMK, CPI call for special funds from Governments for development works

Planned development works include massive drinking water scheme for Rs.460 crore
Tirupur will not be able to become a developed city if it is not able to raise enough revenue

— Photo:M. Balaji

Rutted route: The Tirupur Corporation wants more funds to improve the condition of roads, such as Kumarappapuram Road that is a nightmare for motorists.

TIRUPUR: The Tirupur Corporation has made out a strong case for increasing Property Tax.

Citing a number of planned development works, including a massive drinking water scheme for Rs.460 crore, the corporation told it’s elected Council at an urgent meeting on Thursday that Tirupur would not be able to rise to the stature of a developed city if it was not able to raise enough revenue.

Responding to the views of the Opposition parties that a tax increase now would put the people to a lot of hardship, Mayor K. Selvaraj expressed anguish at his party, Dravida Munnetra Kazhagam, being portrayed as one that was intent on troubling the people.

“The views seek to create an anti-people image of us,” he said.

There was no intention to burden the people. But, the tax increase was vital for the present and the future of Tirupur, he contended.

“As the city expands, we will have to provide a lot of quality infrastructure. And, we also have to solve some existing problems, such as those in drinking water supply,” he said.

Special funds

Explaining constraints in spending, he pointed out that water charges could not be used for any other purpose.

These could be spent only on works relating to water supply.

Therefore, the Corporation needed more tax revenue to carry out other development works.

Leader of the Opposition in the Council and former All India Anna Dravida Munnetra Kazhagam legislator from Tirupur C. Sivasamy called upon the Mayor to request a special fund of Rs.50 crore from the State Government to meet the immediate requirements.

This was a better option for the present than raising the tax. Communist Party of India member P.R. Natarajan endorsed this view and said even the Central Government could provide a special fund, given the huge amount of foreign exchange Tirupur earned for the country through knitwear export.

The Mayor replied that the Corporation would have to work out its own measures as there was no guarantee that the Government might to accede to the demand for special funds now.

The Corporation placed before the Council the details of its revenue and expenditure (see Table 1) and also a list of current and planned works (see Table 2).

Stating that the Corporation had to manage with a Rs.4.05-crore deficit budget for the current financial year, a resolution of the civic body said that it was already paying an annual interest of Rs.5.6 crore on loans got for development works. In 2009, the interest burden would rise to Rs.7.43 crore.

With regard to the loans for the development works mentioned in Table 2, the Corporation said it would have to repay Rs.13 crore every year.

These were reasons enough for the Corporation to go in for an increase in Property Tax, as it was the main source of revenue.

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