Tamil Nadu - Madurai

“Property tax in Madurai highest”

MADURAI: The property tax revision effected by the Madurai Corporation is the highest among the 10 Corporations in the State, the Tamil Nadu Chamber of Commerce and Industry has alleged.

Addressing a press conference here on Monday, chamber’s senior president S. Rethinavelu said that even industrial cities such as Erode and Tirupur had lower rates of property tax revision.

In Madurai Corporation limits, the property tax for commercial buildings had been revised by 100 per cent or 75 per cent based on the building’s category; for special buildings (marriage halls, lodges and hospitals) it was 125 per cent; it was 75 per cent for small and medium industrial units, 100 per cent for larger industrial units and 50 per cent for theatres.

Erode, with 25 per cent revision for commercial and industrial buildings, had the lowest property tax revision. Tirupur Corporation had also effected only 30 per cent revision.

The civic body here, Mr. Rethinavelu claimed, had not consulted any trade body before arriving at these rates. The burden of such a huge revision would only fall on the public and lead to higher inflation, he said.

Chamber secretary N. Jegatheesan said that other Corporations had heeded the opinions of trade bodies and reduced tax rates. They had even included trade body’s opinion in the minutes of the meeting.

Mr. Rethinavelu said that a scientific methodology should be adopted to revise the taxes, as was done in Madurai in 1993 when the then Corporation Commissioner undertook a nearly eight-month-long exercise to decide the revised rates.

He alleged that reports of over 20,000 buildings in Madurai Corporation limits escaping assessment and many other buildings being under assessed had surfaced. “Both the charges have not been denied by the Corporation. Also, penalty tax arrears of more than of Rs. 100 crore from unauthorised constructions remain uncollected,” he said.

The Madurai Corporation had cited paucity of funds for the huge increase. If these irregularities were taken care of, adequate funds could be raised, he said.

The chamber would organise a protest fast here on Tuesday seeking reduction in property tax revision to 40 per cent for industrial and commercial buildings and 50 per cent for special buildings. All trade bodies in the district had extended their support for the fast, he said.

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