Chennai Corporation Imposes 1% Monthly Interest on Unpaid Property Tax
Posted on: 27/Jun/2023 4:43:22 PM
The Chennai Corporation has taken a significant step to ensure timely payment of property tax by property owners. Those who have not paid their property tax for the year 2022-23 by March 31 will now be subject to a one percent interest per month, as decided by the corporation.
Property tax serves as the primary source of revenue for the Chennai Corporation, generating an impressive amount of Rs 750 crore per half year and Rs 1,500 crore per year from approximately 13 lakh property owners. This revenue plays a crucial role in funding essential works such as basic infrastructure development, sanitation projects, solid waste disposal, street lighting, parks and road maintenance, as well as public health initiatives and disease prevention efforts.
However, the corporation is currently grappling with a substantial number of property owners, over 3.50 lakh to be precise, who have not fulfilled their property tax obligations. This lack of compliance has resulted in a recurring revenue deficit for the corporation. To address this issue, the properties of 3 lakh property owners, whose property tax has been undercalculated, are currently being revalued.
Furthermore, the corporation is actively collecting details of individuals with property tax arrears spanning over two years. It has been determined that approximately 3.50 lakh property owners in the Chennai Corporation collectively owe more than Rs 200 crore in unpaid property tax.
By implementing the imposition of interest on overdue property tax, the Chennai Corporation aims to incentivize property owners to promptly fulfill their tax obligations. This initiative is crucial in maintaining a steady revenue stream for the corporation, ensuring the smooth execution of vital projects and services for the betterment of the city.
