Minister KN Nehru has said that the tax has been increased by 50 to 100 percent lower than in other states in India. Without implementing this hike, we will not be eligible for the grants as per the guidelines of the 15th Finance Commission set up by the Central Government.
Coimbatore: The TN state government has announced an increase in property taxes from 50 percent to 150 per cent in corporations and municipalities in Tamil Nadu. Opposition parties, including the AIADMK, have strongly condemned the move.
Opposition parties have stated they will not run in the by-elections. In this situation, the Minister of Municipal Administration KN Nehru has given an interview to the reporters in Delhi as to why the property tax has been increased in Tamil Nadu.
Commenting on this, Minister KN Nehru said:
Tax raised after 24 years: -
Local bodies were asked to declare property tax base rates in 2021-2022 in order to be eligible for the grant on the recommendation of the 15th Finance Commission set up by the Union Government. This is why the property tax has been raised. In the case of Chennai, the property tax has been raised after 24 years. In other areas the tax has been increased after 14 years.
Decrease in tax revenue: -
The property tax hike has been decided on the grounds of inflation and GDP. Property tax revenue has declined in most local bodies. The cost has multiplied. For example, property revenue in Chennai Corporation was 60 per cent in 2010-11. This is down from 51 per cent in 2015-16 and 43 per cent in 2020-21.
Careful result: -
Tamil Nadu has the largest urban area in India. Local bodies need revenue to build new flyovers, modern schools and parks to provide basic amenities to the growing urban population. The tax has been raised so that local bodies can meet their needs. Chief Minister Stalin made this decision very carefully so as not to affect the poor and simple middle class in particular too much.
More in other states: -
The maximum property tax for a 600 sq ft residential building in Chennai will increase to Rs 4,860 after renovation. For a building of similar size, the price has gone up to Rs 8,660 in Bangalore, Rs 15,984 in Kolkata, Rs 17,312 in Pune and Rs 84,584 in Mumbai.
The minimum property tax on a 600 sq ft building in Coimbatore will now rise to Rs 204 and Rs 255 after renovation. It has risen to Rs 648 in Lucknow, Rs 1,324 in Indore and Rs 2,103 in Ahmedabad. At present, the maximum property tax on a 600 sq ft building in Coimbatore will be Rs 972 and after the renovation it will be Rs 1215. It is 2360 in Lucknow. Taxes in states other than ours are 50 to 100 percent higher.
Order of the Central Government: -
We do not want a property tax increase. The 15th Finance Commission of the Central Government ordered the release of the money only if it was accepted. That is why the tax has been raised. This has been raised not only in Tamil Nadu but also in other states. Property tax in Tamil Nadu has been raised less than in other states.
Opposition parties have stated they will not run in the by-elections. In this situation, the Minister of Municipal Administration KN Nehru has given an interview to the reporters in Delhi as to why the property tax has been increased in Tamil Nadu.
Commenting on this, Minister KN Nehru said:
Tax raised after 24 years: -
Local bodies were asked to declare property tax base rates in 2021-2022 in order to be eligible for the grant on the recommendation of the 15th Finance Commission set up by the Union Government. This is why the property tax has been raised. In the case of Chennai, the property tax has been raised after 24 years. In other areas the tax has been increased after 14 years.
Decrease in tax revenue: -
The property tax hike has been decided on the grounds of inflation and GDP. Property tax revenue has declined in most local bodies. The cost has multiplied. For example, property revenue in Chennai Corporation was 60 per cent in 2010-11. This is down from 51 per cent in 2015-16 and 43 per cent in 2020-21.
Careful result: -
Tamil Nadu has the largest urban area in India. Local bodies need revenue to build new flyovers, modern schools and parks to provide basic amenities to the growing urban population. The tax has been raised so that local bodies can meet their needs. Chief Minister Stalin made this decision very carefully so as not to affect the poor and simple middle class in particular too much.
More in other states: -
The maximum property tax for a 600 sq ft residential building in Chennai will increase to Rs 4,860 after renovation. For a building of similar size, the price has gone up to Rs 8,660 in Bangalore, Rs 15,984 in Kolkata, Rs 17,312 in Pune and Rs 84,584 in Mumbai.
The minimum property tax on a 600 sq ft building in Coimbatore will now rise to Rs 204 and Rs 255 after renovation. It has risen to Rs 648 in Lucknow, Rs 1,324 in Indore and Rs 2,103 in Ahmedabad. At present, the maximum property tax on a 600 sq ft building in Coimbatore will be Rs 972 and after the renovation it will be Rs 1215. It is 2360 in Lucknow. Taxes in states other than ours are 50 to 100 percent higher.
Order of the Central Government: -
We do not want a property tax increase. The 15th Finance Commission of the Central Government ordered the release of the money only if it was accepted. That is why the tax has been raised. This has been raised not only in Tamil Nadu but also in other states. Property tax in Tamil Nadu has been raised less than in other states.