By Accommodation Times News Service
The Chennai Corporation passed a resolution seeking approval from the state government to increase property tax for buildings housings IT companies by 50% to 200%. The corporation had recently passed a resolution proposing the revision of the property tax of IT buildings. According to the plan the property tax rates would range from 4 to 27 per sq ft for six months.
One of the officials said, most of these companies were paying only minimal amount as property tax for the last few years. Once the state government approves our proposal, we will start collecting tax at revised rates,” an official said. The corporation intends to revise the taxes from the second half of 2012-2013, when the resolution approving the change was passed. “We will collect the increased amount as arrears this year.
The civic body has identified 344 IT buildings across 10 zones. Adding further he said, IT companies occupy around 3.30crore sq ft but pay a tax amount only to 10.84crore.
IT firms have been opposing the move as the tax revision will keep away firms from the city. Property tax is the biggest source of revenue for the corporation and any shortfall in collection will directly impact infrastructure schemes.
The corporation, presenting a 3,630crore budget with a deficit of 1.1crore, said it expected to earn 780crore from taxes, including property and professional tax.