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.