Chennai corporation raises property tax by 6%, oppn sees red

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CHENNAI: The Greater Chennai Corporation (GCC) approved a 6% property tax hike on Friday despite vociferous protests and a walkout by councillors from AIADMK, VCK, CPI and CPI(M).

The resolution passed by mayor R Priya in the council is expected to generate an additional 105 crore annually for the civic body, adding to the 1,750 crore it currently collects from 13 lakh property bills.

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The last major hike was in 2022 when the tax increased by 50% to 150%. With the current hike, a house that pays a property tax of 7,000 will have to pay 400 more.

The corporation invoked Rule 264(2) of the Tamil Nadu Urban Local Body Rules, 2023, which permits an automatic annual 6% increase or an amount based on the state’s gross state domestic product (GSDP) growth rate over the past five years – whichever is higher. Opposition councillors voiced sharp criticism. However, deputy mayor Mahesh Kumar defended the move, stating, “The Union Finance Commission has mandated a 6% increase in property tax collections for us to receive grants.”

The Finance Commission stipulates that urban local bodies must show annual property tax growth aligned with the state’s GSDP growth rate or a six percent growth, whichever is higher.

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While this can be achieved through reassessment, addressing building violations, ensuring compliance, and aggressively recovering dues, GCC carried out a property tax hike. “If we comprehensively survey city properties, we could achieve growth without raising rates. Our revenue officials need to focus on large entities like marriage halls, educational institutions, and major enterprises,” Kumar added.

AIADMK councillor Karthik Kuppan said the party plans to protest the hike. “The DMK govt blames the Union govt for everything, but the hike was avoidable. There are many ways to show property tax growth without burdening residents.” VCK councillor G Gopinath also voiced concerns.

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“This increase will hurt common people, especially after the recent electricity tariff hike. Why not target properties larger than 2,500 sq ft, industries, and businesses?” he asked. Congress councillor Siva Rajasekharan echoed the same sentiments, urging GCC to drop the plan.

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