The city corporation on Monday passed a resolution increasing the property tax for residential houses and commercial establishments as mandated by the state government recently.
While AIADMK councillors vehemently opposed the resolution and wanted it scrapped, councillors of DMK and its allies urged the council to postpone the hike by one year to make it gradual. Councillors of both the ruling and opposition said that the increase was harsh and would cause hardship for residents.
A 25% tax hike for residential units less than 600 sq ft, 50% hike for houses between 601-1200 sq ft, 75% hike for houses between 1,201-1,800 sq ft and 100% hike for houses more than 1800 sq ft was proposed. Similarly, 75% hike for industries and educational institutions and a 100% hike for commercial buildings were proposed.
DMK councillor T Dharmaraj suggested that as a 100% increase in tax was harsh, it could be increased gradually.
DMK councillor and west zone chairman K A Deivanai said the hike should have been lesser in the city compared to Chennai. The Coimbatore corporation revised tax in 2008 while Chennai last revised it in 1998, she added.
Members of the CPI, CPI, MDMK, Congress and Kongu Nadu Munnetra Kazhagam urged the council not to pass the tax hike resolution immediately. They said it should be shelved for a year or it should be a gradual hike.
Central zone chairman Meena Loganathan said that the state had no other option but to hike the taxes as it was mandated by the union government. Only the central government should be blamed for the issue.
Many councillors raised the issue of harsh penalties for house owners who have constructed buildings in violation of the corporation rules.
