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The Greater Chennai Corporation (GCC) has proposed a 20% discount on property taxes for big-ticket defaulters who owe the civic body more than 346 crore. This move, however, comes with certain conditions. Defaulters are only eligible for the discount if they pay their dues in one go and within three months of the council adopting the resolution. The scheme targets those who have accumulated dues for more than five years and has been sent to the state government for approval.
Of the total 1.12 lakh defaulters, at least 44,436 have not paid property tax for over ten years and alone owe 245 crores to the GCC. The council will only take up the policy for a final nod once it receives concurrence from the state government. Under Section 137 A of the Chennai City Municipal Act, 1919, the corporation has the power to exempt a person from taxes with the sanction of the state government.
Corporation officials believe the move is a win-win for both parties. The discount will help the civic body collect dues at one go, and property owners can avoid expensive court cases. The revision of property tax earlier this year has doubled the revenue collection under the property tax head compared to last year. The property tax target has been set at 1,680 crores for the next financial year.
The GCC's decision to offer discounts to big-ticket defaulters is a significant move, as it could help the civic body collect a significant number of dues in one go. Property owners may find it a financially beneficial option, as it can help them avoid expensive court cases. However, the discount is only available for a limited time, and property owners must pay their dues in one go. The policy may also cause concern among residents who worry it could become a permanent policy and make people complacent in paying taxes.
The GCC has been successful in doubling the revenue collection under the property tax head this year, and it hopes to raise the bar for the next financial year. The increase in revenue collection will enable the civic body to fund more public services, leading to a better quality of life for residents. However, it is essential to ensure that the policy does not create a culture of non-payment of taxes. It will be interesting to see how the state government responds to the proposal and what the outcome will be.
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