Associations express shock at rising property tax structure
Chairman of Tamil Nadu Foodgrains Merchants Association Limited, SP Jeyapragasam on Saturday expressed his shock at the announcement of a property tax increase from 25 to 150 percent by the state government.
In a press statement issued here on Saturday, he said that when the state government successfully overcame the challenge posed by the covid-19 pandemic, the people breathed a sigh of relief. At a time when trade and industry were also looking to get back to business, the announcement of a property tax hike at this stage was a blow.
The government should have a mechanism in place and every three years the tax structure can be fixed for different categories, Jeyapragasam said and urged Chief Minister MK Stalin to intervene on the issue immediately.
TN Agro Food Chamber of Commerce and Industry President S. Rethinavelu said trade and industry and the general public cannot bear this shocking escalation in property tax and rising rents resulting as they battled for survival after the covid-19 pandemic.
Even the existing taxes are very high, which were levied without any justification and there was a continuous demand to reduce the property tax.
He added that the government should adopt a scientific and transparent system of property tax collection taking into account various parameters such as the cost of living in the city, the location of the property, the available infrastructure, etc.
This method of escalating the rule of thumb would only affect the general population and the rent of properties could also rise sharply, which would prevent micro and small units, both in commerce and industry, from operating and functioning. close their establishments, especially in the agribusiness sector, which are operating on a slim margin.
Tamil Nadu Chamber of Commerce and Industry President N. Jagatheesan said commerce and industry, which have already been hit hard by the economic stagnation due to the pandemic, will be further affected by the abnormal increase in the property tax.
Slightly more than 20 percent of small and micro businesses have yet to fully start operations as the pandemic has severely affected the industry over the past two years, he added.
Madurai District Small and Small Industries Association Chairman MS Sampath has condemned the decision to increase the levy. He said the rising cost of raw materials, gasoline and production had already affected the industry. The government should therefore reconsider its decision.