Tiruchirapalli, July 1: The Tiruchirapalli City Corporation Council has reduced the quantum of hike in Property Tax set for revision with effect from April 1, 2008 yielding to popular demand of the general public.
A decision to this effect was taken at an urgent meeting of the council here yestrday.
The Council decided to restrict the maximum tax hike to 20 per cent for residential buildings, 75 per cent for industrial buildings and 80 per cent for commercial buildings.
However, the basic value for properties in different parts of the city, already fixed by the Corporation, would remain unchanged. The basic value would form the basis for the tax calculation.
The Corporation had previously fixed the hike at 25 per cent for residential buildings, 100 per cent for industrial buildings and 150 per cent for commercial buildings, the maximum limit stipulated by the government.
About 1,36,452 residential property owners, 229 industrial assessments and 10,022 commercial assessments in the city would benefit from the Council's decision.
Opposition All India Anna Dravida Munnetra Kazhagam, Marumalarchi Dravida Munnetra Kazhagam and the Desiya Murpokku Dravida Kazhagam members staged a walk-out demanding the tax revision be put on hold in the wake of the rise in the prices of essential commodities and petroleum products.
The decision comes after a clarification order issued by the Department of Municipal Administration allowing urban local bodies to finalise the tax rates, within the prescribed ceilings, depending on their financial position.
Mayor Sarubala R Tondaiman, who was in the chair, observed that the Corporation has to take into account the funds required for debt servicing, future infrastructure development and improvement to basic amenities.
Commissioner T T Balsamy clarified that the reduction in the levy would not affect the tax computing process already under way.
The Corporation had already collected self-assessment forms from a majority of property owners and they would soon be issued the demand notices as per the revised tax rates fixed by the Council.