A day after the property tax rates were increased in Tamil Nadu, Minister for Municipal Administration K.N. Nehru said on Saturday the hike was based on the 15th Finance Commission’s guidelines.
“Otherwise, the Central funds will not be released,” he told reporters in New Delhi. Funds to the tune of ₹15,000 crore would not be released if the revision was not done, and development work would be affected, he said.
Mr. Nehru said it was applicable to all the States and the property tax was 50%-100% higher in other States than in Tamil Nadu. Chief Minister M.K. Stalin ordered that the revision be done in such a way that it did not affect the poor and the middle class.
Mr. Nehru hit out at Leader of the Opposition and AIADMK co-coordinator Edappadi K. Palaniswami for his remarks that the hike was a trailer and more “bumper prizes” were in store for people.
In 2018, the AIADMK government had proposed a 200% hike for all sections and held it back because of the election. But now the tax was raised more for the rich and to a lesser extent for the poor and the hike was based on a slab system, the Minister said.
Asked about the DMK’s protest against the property tax hike when the party was in opposition, Mr. Nehru said, “We do not know whether the 15th Finance Commission’s guidelines were in place then.”
