Corp Increased Prop Tax
The Coimbatore Corporation on Wednesday increased the property tax for all buildings, including residential and industrial ones. This is with effect from April 1 this year. The tax revision comes after a gap of 10 years. The increase comes to 20 per cent for residential buildings (both owner-occupied and let-out), 50 per cent for industrial buildings, 75 per cent for commercial complexes and 50 per cent for government buildings.The government had said such tax revision could be up to 25 per cent for residential buildings, 100 per cent for industrial buildings and 150 per cent for commercial establishments. Despite having made out a strong case to increase the tax to the maximum prescribed limit, in the face of opposition from parties the civic body refrained from going for the maximum level of increase. The Corporation has told the Council that it had worked out different percentages of increase for buildings constructed during various periods between April 1, 2003 and October 1, 2007. Buildings constructed after October 1, 2007 would not have any revision.
Those built from April 1, 2006 to March 31, 2007 would have a 5 per cent increase. The increase for those built from April 1, 2005 to March 31, 2006 was 10 per cent. For two other categories — April 1, 2004 to March 31, 2005 and April 1, 2003 to March 31, 2004 — the proposed increase was 15 per cent and 20 per cent respectively. This was brought down to 10 per cent for both categories in the face of opposition. The Corporation also announced rates per square foot for buildings assessed for tax with effect from April 1, 2008 (see table). The tax rates for existing star hotels, super-specialty hospitals and air-conditioned marriage halls would be revised on the basis of these rates.
The proposals got through in the Council only in the second attempt. With signs of protest from the All India Anna Dravida Munnetra Kazhagam and the Communist parties at last month’s meeting, the Congress and its ally, the Dravida Munnetra Kazhagam, deferred the discussions on the hike.
