Tamil Nadu Govt Set To Revise Property Tax, CM MK Stalin Reveals Reason Behind It

Tamil Nadu Chief Minister MK Stalin announced on April 6 that the DMK-led state government was constrained to revise the current property tax to ensure funds flow to the newly elected civic bodies to allow developmental activities. Stalin also appealed to the political parties to not politicise the matter.

Rejecting a plea by numerous political parties, including his own allies, at the Assembly, to either roll back the newly announced revision or announce a cut, the Chief Minister stated that the property tax revision was not deliberate; however, it had to be done to empower the civic bodies financially.

83% Of Households In Urban Tamil Nadu Won't Be Affected: Stalin

"I wish to state that the government does not derive pleasure in revising property tax but is constrained to do so to ensure funds to the cash-strapped local bodies," Stalin was quoted as saying by NDTV while responding to the matter raised in the Assembly House.

He further added, justifying the government decision, that the present revision will in no way impact almost 83 per cent of the households in urban Tamil Nadu. Stalin then explained that the sole purpose for this hike was due to the local bodies starving for funds as elections were not held, and the cash-starved civic bodies did not have the aid to fulfil the basic requirement of the citizens.

However, the situation has now changed drastically amid elections, and the recently elected representatives would anticipate funds from the state government to kick start development projects.

150% Increase In Tax

Responding to the parties, K N Nehru, Municipal Administration Minister, stated that approximately 83 per cent of the urban areas' households would see a 25-50 per cent tax hike. When compared to any other metros in India, the tax slab put forward for Chennai is the lowest. Out of the 11.03 lakh houses in the Chennai Corporation area, a 25 per cent hike has been proposed for 1.52 lakh houses, while 3.46 lakh and 3.12 lakh houses will increase by 50 and 75 per cent, respectively.

Furthermore, the guideline value of land in both extended and core areas was grown manifold.

Of the 77.87 lakh houses across the state, only 1.09 lakh will see a 150 per cent increase in tax. Of the 44.53 lakh households, 58.48 per cent will witness an increase of 25 per cent, while 24.70 per cent will have a 50 per cent hike.

The new tax slabs are set to effect from the first quarter of 2022-23.

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