Chennai Approves 6% Property Tax Hike

The Greater Chennai Corporation (GCC) has approved a 6% property tax hike, effective from October to March, to generate an additional ₹105 crore annually. The increase, mandated by the Tamil Nadu Urban Local Body Rules, 2023, is necessary for qualifying for Union government grants as stipulated by the 15th Finance Commission. Opposition parties like AIADMK, VCK, CPI, and CPI(M) have protested the hike, citing its impact on residents already burdened by rising costs and previous tax increases. PMK founder S. Ramadoss has demanded a rollback, arguing that the hike unfairly impacts the poor and middle class. Deputy Mayor Mahesh Kumar defended the move, pointing out financial difficulties and the need for increased revenue to fund civic projects. Critics, including the Builders Association, warn that frequent tax hikes could deter property investments and harm the real estate market.