Boost in Property Tax Collection Drives 85% Revenue Increase for Chennai Corporation
Posted on: 12/Aug/2023 11:53:15 AM
Chennai Corporation`s revenue has surged by 85.6% due to successful measures aimed at boosting property tax collection. Prior to implementing these strategies, the civic body`s revenue stood at ₹1,240 in 2017-2018. However, after adjusting property tax rates, the revenue has risen to ₹2,302 in 2022-2023. Notably, property tax collection saw a significant increase to ₹11,615 crore in 2021-2022.
In response to a Comptroller and Auditor General report highlighting a decline in revenue, Chennai Corporation formulated an action plan for revenue augmentation. The report revealed that between 2015-2016 and 2019-2020, the corporation generated only 53% of its revenue.
The importance of fiscal autonomy was stressed by the CAG, noting the delay in releasing a ₹1,323 crore performance grant post-2017 by the Central government, despite the urban local bodies meeting eligibility criteria. The 2022-23 property tax collection for Chennai Corporation reached around ₹1,500, expected to rise further with ongoing property tax reassessment. The number of property tax assesses has exceeded 14 lakh across the city`s 15 zones.
To enhance revenue generation, upcoming initiatives include advertisement fees and parking charges.
