The Hindu : Tamil Nadu / Chennai News : Property tax collection exceeds target this fiscal

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Thursday, Mar 26, 2009
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Tamil Nadu

Tamil Nadu - Chennai

Property tax collection exceeds target this fiscal

R. Srikanth and Deepa H Ramakrishnan

Chennai Corporation aims to collect Rs. 25 crore more

CHENNAI: With still a week left for the current fiscal to end, the Chennai Corporation, which has already netted Rs. 300 crore property tax, is confident of collecting Rs.25 crore more.

Of Rs.198.47 crore property tax arrears, the civic body this month has collected Rs.60 crore. The increase in the property tax collection in 2008-09 happened despite the tax rates remaining the same.

The tax rates were last revised in 1998-99.

It had set for itself a target of Rs.300 crore property tax this fiscal, including recovery of arrears. In 2007-08, the revenue collection under this head was Rs.283.80 crore; in 2006-07 – Rs. 227.71 crore; in 2005-06 – Rs. 218.07 crore and in 2004-05 – Rs.210.85 crore.

While the Corporation has been able to improve its revenue collection in the last five years, property tax outstanding has also been growing and at present stands at Rs.138.47 crore.

Giving data on the arrears, a Corporation official said the reason some of the zones had huge backlog of arrears was because they have a larger number of commercial buildings, who owe a lot to the civic body.

He said a total of 63 such assessees owe more than Rs.25 lakh each, 500 assesses Rs.10 lakh-plus each, 800 assessees had to pay over Rs.5 lakh each, and 7,800 assessees over Rs. 1 lakh each.

On the measures being taken to collect the arrears, he said the Corporation has been undertaking special drives in all its 10 zones for the purpose.

The list of property owners who have not paid the tax on time was generated from the computerised database.

Re-assessing properties

Simultaneously, the Corporation has been taking steps to prevent under-assessment of property tax by re-assessing the properties.

The official said out a total of 1.10 lakh commercial and residential-mixed commercial properties, 55,000 were found to be under-assessed. Notices, demanding payment, including arrears for the past few years, had been sent to owners.

“But more than two lakh individual houses are also said to be under-assessed and we will organise a camp after the general elections. An opportunity would be given to the assessees to come clean.”

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