Collect arrears before taxing us with hike, residents tell Chennai Corporation

The late-night announcement by the state government to increase property tax is snowballing into a political issue as former Chief Minister Edappadi K Palaniswami, under whose rule property tax was increased in 2018 but withheld the revision, mocked the decision by saying ‘the hike is just a trailer, and many more bumper prizes are in line’.

EPS tweeted: “Now, the government has presented property tax hike up to 150 per cent to the people who gave opportunity in urban local body election. The hike is just a trailer. Many more bumper prizes are in line for the public.” However, Municipal Administration minister KN Nehru blamed the central government for the hike. “The state government did not want to increase the tax. It was implemented as per the 15th central finance commission mandate. Union grants will be released only if tax rates are increased,” he added.

Property owners, both residential and commercial buildings, expressed discontent over the hike. “Revision of property tax has come at a time when prices of essentials are skyrocketing fuelled by fuel price-hike,” said Jayaram, T Nagar Residents Welfare Association.

He also pointed out that the committee, which was constituted by the government, had not held any meetings with the stakeholders. “The state government must rescind the hike and ask the Greater Chennai Corporation (GCC) to collect arrears before increasing the tax,” he added.

Harsha Koda, co-founder, Federation, OMR Resident Associations, said, “Considering that the government has taken a logical step differentiating between core city and outskirts, we hope that they’ll also consider similar logic while taxing those with and without Water and Sewage connections. Most of the ‘added areas’ do not have these connections even after 10 years of becoming part of GCC. We should logically be paying nil Water tax.” R Rajkumar, secretary, Chennai Hotels Association, said that Stalin had opposed the property tax hike made by the then government. “But it has increased it suddenly. Now, without implementing 10 per cent hike once in 3-5 years, the government has resorted to this steep hike,” he said.

Lamenting that the hospitality sector was already hit by demonetisation, GST and COVID-19 during the last 4 years, Rajkumar rued, “Only now, the sector has been picking up. In most hotels, only 5 per cent rooms are occupied. Many lodges in Central and Periamet are closed.” Meanwhile, a GCC official said that “the hike will increase the own-source revenue. Chennai would lose more than Rs 1,000 in union grants if tax is not revised.”

Infographics on percentage of tax increase in Chennai