Finance commission insisted to increase property tax to receive pending dues: KN Nehru

Tiruchy: The 15th Finance Commission insisted as many as 14 States to increase the property tax to get eligible for Central funds from the fiscal year 2022-23, so with no other option, we have revised the tax as all other states have already obliged but we were the last state to increase the tax, said Municipal Administration minister KN Nehru here on Saturday.

Speaking to the reporters after inspecting the site for the integrated bus stand in Tiruchy, the minister KN Nehru said, the AIADMK has no charge against the DMK government and so they have taken the issue of property tax which was revised after the union government insisted to do so for getting eligible for availing central funds.

“The property tax increased by the then AIADMK government in 1987 with 100 per cent for rural areas, 200 per cent for urban areas and 300 per cent for the industrial areas. Similarly, the same AIADMK government during 1993 increased the tax to 100 per cent, 150 per cent and 250 per cent. But in 1998, the then DMK government had increased 50 per cent for rural areas, 75 per cent for urban areas, and 125 per cent for industrial areas. So, the AIADMK leaders have no charges against the DMK government and so they have been taking this to blame us”, Nehru said.

Meanwhile, the minister said that the 15th finance commission has asked as many as 14 state governments including Tamil Nadu to get eligible for central funds for the years 2022-23, 2023-24, and 2024-25.

“While already Rs 7,500 crore has been pending, there is a pending of Rs 15,000 crore a current year from the union government, the Chief Minister asked us to wait and watch the other states. Since all other states have increased as per the recommendations of the union government already, we were the last state to revise the tariff but still, comparatively less than the other states”, stressed the minister.

He also said that the property tax has increased only for the constructed areas and not for the whole land. “If a person owns 2400 sq ft land and constructed a building in an area of 1200 sq ft, the tax would be levied only for the constructed area”, he said.

In the meantime, the integrated bus stand DPR has already been approved by the Chief Minister and the tender for the construction of the bus stand with all facilities would be floated soon.