The civic body has seen a dip in the property tax collection. As of September 17 this year, the Corporation has recorded a collection of 20%. Last year during the same period, the Corporation had seen 34% of the assessees pay property tax.
According to the Corporation sources, the dip is perhaps on account of the revision of property tax, which the civic body implemented on July 1. Though there may be other factors at play for the 51.85% dip in collection, the 50% revision for houses and 100% revision for commercial and industrial establishments is one of the major reasons, says an official on condition of anonymity.
As of September 17, 2019 the Corporation has received ₹53.84 crore. Last year for the same period, the money that flowed into its coffers was ₹ 52.85 crore. Though the tax received in rupee terms is more or less the same, the increased demand (money to be collected) on account of the revision made the difference.
The July 1, 2019 revision, which is with effect from April 1, 2019, saw the property tax demand go up by 76.65%.
The other reasons that the officials proffer are more assessees paying tax for a year at one go during the second half of the financial year, the Corporation not reaching out to assessees to pay early and the recent statement from the Municipal Administration and Water Supply Department that the State Government is having a rethink on the quantum of revision.
Tax payers are adopting a wait and watch approach, says consumer activist K. Kathirmathiyon.
The rate of revision has sent shock waves as the Corporation has, perhaps, the maximum revision percentage. This, along with its demand to the tax payers to pay arrears – for the two half years of 2018-19 – has further burdened people.
Therefore, they are slow to pay. And, after the Minister made the statement recently, the assessees have decided to wait and watch.
Anees Fathima, a Podanur resident, says she has decided to delay paying property tax as the Minister has indicated that there may be a rethink on the rate of revision. For her family clinic, the Corporation’s property tax demand for the current half-year plus arrears for two half years of 2018-19 works out to over ₹ 8 lakh. This is a huge sum that the family cannot pay, and therefore, the wait and watch approach. A few wedding hall owners, whom she knows, have replied to the Corporation’s demand notice that they do not agree to the rate of revision, she adds.
Mr. Kathirmathiyon says that the Government that acted on the Madras High Court order to remove inequalities in property tax structures in the State has done nothing to equalise the tax in the current revision. The inequality continues, and therefore, can be taken to the notice of the court, he adds.
