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Taxation

Property tax: old city areas may pay more

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The Hindu          24.10.2014 

Property tax: old city areas may pay more

With the Chennai Corporation considering a proposal to revise property tax rates on the basis of current guideline values, residents wonder what the impact on their expenses will be.

Some neighbourhoods in the recently-added areas of the Chennai Corporation pay the same property tax as those in well-developed areas such as T. Nagar that fetch high rental values, experts said, pointing to anomalies.

Residents of such neighbourhoods with low guideline value pay the same amount of property tax as neighbourhoods with high guideline values every half year.

A chunk of the 11 lakh residential and commercial properties which have relatively lower property tax rates are within the old city limits. The civic body will map all such roads to asses the loss of revenue because of the existing system. Based on a study, the civic body will rationalise and revise property tax rates.

Property tax is around 30 per cent of the total revenue of the civic body. The increase in property tax collection is likely to result in a rise in per capita capital expenditure. Chennai spends less than Rs. 2,000 per resident, much lower compared to developed cities.

A chunk of the 11 lakh residential and commercial properties which have relatively lower tax rates are within the old city limits

 

 

User charges on property tax assesses for garbage clearance

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The Hindu        14.10.2014 

User charges on property tax assesses for garbage clearance

Madurai Corporation is the latest urban local body to take up the idea

The Madurai Corporation is the latest urban local body to embrace the idea of levying user charges on certain sections of property tax assesses for garbage clearance.

Madurai is, however, not a solitary case. Some other urban local bodies have been levying the user charges.

Recently, Avadi has decided to introduce the levy, where the monthly charges vary from Rs. 200 to Rs. 2,000. An official points out that Sembakkam municipality is netting a monthly revenue of Rs. 3.5 lakh to Rs. 4 lakh.

Asked whether it is not part of the core functions of any local body to collect garbage, the officials reply that ideally, a local body should devote greater attention to the functions of disposal and treatment of waste than that of collection.

But, in reality, it is the other way round. Manpower shortage and increasing transportation cost are stretching the resources of the local bodies beyond the manageable level.

In Madurai, the quantity of waste was around 300 tonnes to 400 tonnes a day three years ago. After its limits have been enlarged, it is now around 700 tonnes to 800 tonnes.

The present daily generation of solid waste by 135 urban local bodies (other than Chennai) is about 7,300 tonnes. In Chennai, it is 5,000 tonnes. (A senior official of the Chennai Corporation says no such charge is made).

The focus of the present drive is on “bulk generators of waste” such as shopping complexes, hotels, restaurants and hospitals. Generally, domestic category of property tax assesses is not covered.

The levy can result in waste reduction too, the officials add.

N. Jegatheesan, president of the Tamil Nadu Chamber of Commerce and Industry (TNCCI), who terms the proposed charges of the Madurai Corporation unfair, says that if the local bodies focus on bulk generators, there will not be any problem.

An official responds that the move is only in the initial stages and the final decision will be taken only after holding a public hearing and taking an approval of the government.  

 

Proposed tax for garbage clearance draws flak

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The Hindu          07.10.2014 

Proposed tax for garbage clearance draws flak

Tamil Nadu Chamber of Commerce and Industry has opposed the Madurai Corporation’s decision to levy service tax for garbage clearance.

In a press statement, N. Jegatheesan, president of the TNCCI, said a minimum of Rs.18,250 and maximum of Rs.1,82,500 had been fixed by the civic bodies for clearance of garbage every year. The tax to be imposed on lodges, hotels, marriage halls, hospitals, markets, showrooms, shopping complexes, cinema theatres, small-scale industries and commercial establishments was “ultra vires” and would force several establishments to close shutters, he stated. Mr. Jegatheesan said it was the bounden duty of the corporation to clear garbage and collection of special tax for the purpose was “unethical and untenable.” He requested the Mayor and the Corporation Commissioner to withdraw the levy.

 

 


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