Leaders of two alliance parties of the ruling DMK party on Sunday sought rollback of the hike in property taxes in Tamil Nadu. MDMK leader Vaiko and Tamizhaga Vazhvurimai Katchi founder T. Velmurugan described the hike as steep.
In a statement, Mr. Vaiko said the 25%-150% increase in property taxes in Tamil Nadu will be an additional burden on people, who are already struggling to cope with increasing fuel prices. “The State government has said the increase in property taxes is based on 15th Finance Commission recommendations and for enabling the growth of State gross domestic product. The people have struggled over the last year because of loss of livelihood due to the COVID-19 pandemic, lockdowns and increasing unemployment. With petrol and diesel prices also on the rise, the increase in property taxes will affect people. Therefore, the DMK government must reconsider this decision,” said Mr. Vaiko.
In a separate statement, Mr. Velmurugan said the Centre’s decision to add a caveat that State governments must increase property taxes if it wants to seek financial help for Centrally backed themes, was untenable. “The property tax hike must be rolled back. Instead of increasing property taxes, the State government must seek additional funds from the Central government. The State government must ensure that the equal amount of tax revenue being sent to Centre, should be given to the States as well,” he said.
