The Greater Chennai Corporation (GCC) has passed a resolution to stop collecting a 12% per annum penalty (1% per month) for the delayed payment of property tax from approximately 25,000 government buildings.
This exemption, which follows the Tamil Nadu Urban Local Bodies (Second Amendment) Act, 2024, applies to properties owned by:
- The Central and State governments.
- Public sector undertakings (PSUs).
- Statutory bodies owned or controlled by the government.
The exemption covers 24,497 State-owned properties (including commercial buildings) and 458 Central government properties.
Traders Demand Similar Exemption
Following this resolution, local traders’ associations have demanded that a similar exemption from the penal interest be extended to commercial buildings.
- Argument: Traders argue that they are already paying property tax at “exorbitant rates” following a tax revision.
- Concern: They warn that penalizing commercial buildings for delayed payments will lead to a price rise, affecting citizens.
- Impact: Some association representatives stated that many traders have been unable to pay the revised tax rates, leading to pressure from collectors and forcing some to leave Chennai for smaller towns. They also mentioned that over 35% of business has been captured by online players, making the situation worse for local businesses.
- Source: Click Here
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