Associations express shock over hike in property tax structure

The Tamil Nadu Foodgrains Merchants Association Limited president SP Jeyapragasam on Saturday expressed shock over the announcement to rise in property tax from 25 to 150 % by the State government.

In a press release issued here on Saturday, he said that when the State government had successfully overcome the challenge posed by the covid-19 pandemic, the people had heaved a sigh of relief. At a time, when trade and industry too looked to get back to their business, the announcement to hike the property tax at this juncture was a big blow.

The government should have a mechanism in place and every three years, the tax structure can be fixed for different categories, Mr Jeyapragasam said and urged Chief Minister M K Stalin to intervene in the issue immediately.

TN Agro Food Chamber of Commerce and Industry president S. Rethinavelu said that the trade and industry and general public cannot bear this shocking escalation of property tax and consequential rental increase, when they were fighting for their survival after covid-19 pandemic.

Even the existing taxes are very high, which were levied without any rationale and there was a continuous demand to reduce the property tax.

He further said, the government should adopt a scientific and transparent system in levying property tax considering various parameters like cost of living in the city, property location, infrastructure available etc.

This method of thumb rule escalation would only affect the people at large and the rent of properties may also go up heavily resulting in micro and small units both in trade and industry not able to operate and close their establishments, especially in agrofood sector, who are functioning on a thin margin.

Tamil Nadu Chamber of Commerce and Industry president N. Jagatheesan said that the trade and industry which has already been hit hard by the economic stagnation due to the pandemic would further be hit by the abnormal hike in property tax.

A little over 20% of small and micro enterprises have not yet fully started business as the pandemic had severely affected the industry for the past two years, he added.

The Madurai District Tiny and Small Scale Industries Association president M.S. Sampath condemned the decision to hike the tax. He said the increase in the cost of raw materials, petrol and production had already affected the industry. Hence, the government should reconsider its decision.

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Printable version | Jun 18, 2022 1:20:32 pm |