Chennai's Property Tax Hike: GCC Approves 6% Increase

Last updated: 28 September 2024

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Quick Summary

The Greater Chennai Corporation (GCC) has approved a 6% increase in property tax, set to take effect from the October-March cycle. This decision, supported by DMK councillors, faced strong opposition from other parties who walked out in protest, citing concerns for the poor and working class. The tax structure, based on property type and location, mandates an annual increase of either 6% or the average GSDP growth rate, whichever is higher.

The Greater Chennai Corporation (GCC) council on 27th September 2024, approved to raise property tax at a rate of 6%.

Timeline

The increased rate is expected to take effect from the October-March cycle, with the exact date to be notified by the state government.

Chennai Property Tax Hike: 6 Increase Approved by GCC

Reaction on Increased Tax

The decision was primarily supported by DMK councillors, while CPI, CPI(M), VCK, and AIADMK councillors strongly opposed the hike who walked out in protest, arguing it will negatively impact the poor and working class, leading to a walk-out.

Tax Structure

The property tax is determined based on property type (commercial or residential) and location. According to Tamil Nadu Urban Local Body Rule 264(2), the tax must increase annually by either 6% or the average growth rate of the Gross State Domestic Product over the past five years, whichever is higher.