Shocker for homeowners as Chennai Corporation hikes property tax by 6%

CHENNAI: Property owners in the metropolis will have to pay more in tax as the Greater Chennai Corporation (GCC) on Friday passed a resolution to hike property tax by six per cent to boost revenue for the local body, effective October 1. The decision, however, didn't go well with ruling DMK's allies the CPM and the VCK – which has recently been blowing hot and cold on ties – who staged a walkout.

The State government had last hiked property tax for local bodies in the 2022-23 fiscal where properties below 600 sq.ft saw a 50% increase and those between 601 and 1,200 sq. ft a 75% rise. For properties between 1,201 and 1,800 sq.ft, the rise was 100%, and for properties above 1,800 sq.ft, it was 150%.

The new Tamil Nadu urban local body rules 2023 permit the Greater Chennai Corporation (GCC) to raise property tax by six per cent or by the average growth rate of the state’s Gross State Domestic Product (GSDP), whichever is higher.

For the present fiscal, this comes into effect from October 1, the resolution moved by Chennai Mayor R Priya noted.

While the opposition benches were silent, the CPM and VCK councillors demanded that the council withdraw the resolution which would affect the common people's livelihood. They also suggested that the local body can hike the property tax for properties above 2,000 sq.ft to increase its revenue. The councillors then walked out of the council hall in protest even as Mayor Priya assured that she would look into their demands positively.

With the hike in property tax going up again within two years, anger was palpable among the public too. "Compared to the 50% hike in property tax after a gap of 24 years in 2022, a staggered increase by a small percentage every year is the way ahead. However, they must cap it to a maximum of 5 per cent. The government needs funds to maintain the existing infrastructure and pay the workers and contractors. But waving hike during election time and suddenly increasing it should be avoided as much as possible," said C Raghukumar, a resident of Perambur.

HOW PARTIES REACTED

~ VCK, CPM and CPI opposed resolutions to hike property tax, enhance fines for public disposing of waste without segregation and collect registration costs for private burial grounds

~ More than half a dozen councillors of alliance parties staged a walkout after the mayor ignored their plea to withdraw the property tax hike resolution

~ PMK leader Dr S Ramadoss condemned the GCC council resolution to revise the property tax. He also urged the civic body to withdraw the proposal

~ The AIADMK councillors also later claimed that they are against the resolution passed on increasing property tax in the city