The Madurai Corporation has announced a 6% property tax hike, effective from Oct 1, for the second half of the financial year. Opposition councillors criticized the decision, arguing that it was implemented without adequate notice, further burdening taxpayers just a year after the previous hike.
According to corporation officials, ₹230 crore was collected in property taxes during the 2023-24 financial year, with a target of over ₹260 crore for 2024-25. The hike is part of the Tamil Nadu Urban Local Bodies Rules, 2023, which mandates annual property value revisions based on either the average Gross State Domestic Product (GSDP) growth over the past five years or by 6%, whichever is higher, unless a general revision occurs.AIADMK councillor and leader of the opposition, M Solai Raja, condemned the hike, stating, “During AIADMK rule, we avoided a tax hike for ten years, yet maintained full coffers.
In contrast, property taxes have surged by 100% for residential and 150% for commercial properties in the last 3-4 years.” He urged the corporation to focus on recovering dues from major defaulters rather than increasing taxes on ordinary citizens and called for reassessing commercial properties that pay residential tax rates.
Defending the hike, corporation commissioner Dinesh Kumar said it aligns with similar policies in other cities like Chennai and would generate an additional ₹23 crore in revenue. A recent reassessment of over 3,000 properties added ₹7 crore to collections. “To receive tax-related funds from the central govt under the 15th Central Finance Commission, we must collect taxes proportional to the GSDP, and this hike is essential to meet that requirement,” the commissioner added.
Despite these measures, the corporation faces challenges such as tax arrears, misclassified properties, and long-standing litigation. Some arrears date back over 50 years, complicating collection efforts. A tax appeal committee, formed last year, is addressing these issues.
To encourage timely payments, the Madurai Corporation has kept tax collection centres open on weekends during the first two months of the financial year and offers a 5% incentive, up to ₹5,000, for early taxpayers. Property owners who pay by Oct 31 will also receive a 5% discount on taxes for the second half of the 2024-25 financial year.
