The Indian Express    08.08.2012

UT commercial property tax rate may be hiked

The tax on commercial property in the city may witness an increase with the issue to be taken up at the meeting of the House Tax committee to be held in the coming days. The extent of the increase would be decided after a discussion at the meeting.

The members of the committee had at the previous meetings been opposing the proposed increase on the grounds that a survey of the commercial properties be conducted. Property tax on commercial property was imposed in 2004 after initial resistance from the Municipal Corporation. The Administration had assured the civic body of a matching grant if the tax was imposed.

There have been repeated reminders from the Administration for imposition of tax on commercial property as well as imposition of tax on residential property. The agenda for increasing tax on commercial property was brought up for discussion in the previous meetings of the committee as well but had been opposed by the councillors across party lines.

Instead, it had been suggested that a fresh survey of commercial property be done in order to ensure that all properties are under the ambit of taxes. It was opined that some property owners were exempted from taxes due to lack of proper survey.

A member of the committee observed, “We will have to consider the increase in the property tax on commercial property. The Municipal Corporation requires funds for various works including the recruitment of new staff. If new taxes are not imposed, this would not be possible.”

However, a section of the councillors are opposed to the proposed increase. Deputy Mayor Satish Kainth, who is a member of the committee, said that they would ask the officials to conduct a survey before the increase.

At present, some people are paying property tax while others are not. He added that instead of putting a greater burden on people who are already paying tax, the remaining section should be brought under its ambit.

The BJP, meanwhile, has already stated that it would oppose any move to either impose tax on residential property or increase the amount on commercial property. It is being opined that the Administration should release the grant that was promised earlier and has still not been given before the tax is imposed.