Copyright thehindu
The Greater Chennai Corporation (GCC) will stop collecting a penalty of 12% interest rate per annum from 25,000 government buildings for delayed payment of property tax. The Corporation Council on Thursday passed a resolution to exempt the properties owned by the Central and State governments, public sector undertakings, or statutory bodies owned or controlled by the government, following the Tamil Nadu Urban Local Bodies (Second Amendment) Act, 2024. As many as 24,497 properties, including commercial buildings, owned by the State governments, and 458 properties owned by the Central government will be exempt from the penalty of 1% per month for delay in property tax payment. Meanwhile, traders’ associations demanded a similar exemption from penalty. S. Vikramaraja of Tamil Nadu Vanigar Sangangalin Peramaippu said the State government should amend the Act to stop collecting penalty from commercial buildings too. “We are already paying property tax at exorbitant rates because of the tax revision. Penalising commercial buildings for a delay in the payment of property tax will lead to price rise, affecting citizens. Over 35% of the business has been captured by online players. Most of the traders operating from commercial buildings in Chennai will quit and businesses will fail if the GCC continues to collect a penalty,” Mr. Vikramaraja said. ‘Unable to pay’ Purasai Traders’ Association president Nagabooshanam said many traders had been unable to pay the property tax after the revision of tax rates. As a result, they left Chennai for smaller towns, because of pressure from the tax collectors.
