Property tax hike tied to Centre’s condition to receive funds: KN Nehru

TIRUCHY: Speaking to reporters after inspecting the site for the integrated bus stand in Tiruchy, the Nehru said, the AIADMK has no other issue to raise against the DMK government, so they have taken the property tax.

“The property tax was increased by the then AIADMK government in 1987 by 100 per cent for rural areas, 200 per cent for urban areas and 300 per cent for industrial zones. Similarly, the same AIADMK government during 1993 increased the tax by 100 per cent, 150 per cent and 250 per cent for the three categories. But in 1998, the then DMK government increased the tax only by 50 per cent for rural areas, 75 per cent for urban areas and 125 per cent for industrial zones,” Nehru said. Meanwhile, the minister said that the 15th Finance Commission has asked as many as 14 state governments, including Tamil Nadu, to hike the tax and get central funds for the years 2022-23, 2023-24 and 2024-25.

“While already there is an arrears of Rs 7,500 crore, another Rs 15,000 crore is pending for the current year from the Centre, the Chief Minister asked us to wait and watch the response and action of other states. Since all other states have increased as per the recommendations of the Centre already, we were the last state to revise the tariff. Still, the rates are less in Tamil Nadu when compared to other states,” stressed the minister.

He also said that the property tax has been increased only for the constructed areas and not for the whole land.

“If a person owns 2,400 sq ft and constructed a building in an area of 1,200 sq ft, the tax will be levied only for the constructed area,” he said.

Regarding the new bus stand, Nehru said that the DPR has already been approved by the Chief Minister and the tender for the construction of facility would be floated soon.