Most of the property tax assessees in the city have failed to pay up on time, leading to a considerable fund crunch when it comes to implementing civic projects. The Greater Chennai Corporation is now planning to improve tax collection by taking stringent action against defaulters.
On Saturday, a drive was launched to lock and seal establishments operating without a trade licence. A number of establishments on roads such as Anna Salai and Nelson Manickam Road were sealed.
The civic body is in the process of tracing more such institutions that are operating without a trade licence.
Under provisions of the Chennai City Municipal Corporation (CCMC)Act, assessees have to pay property tax within 15 days of the commencement of the half- year period, namely October 1.
Residents and traders have failed to pay Rs. 275 crore in property tax within the stipulated time of 15 days.
“Most of the assessees think that the payment should be made before March 31 for this half year. But it actually has to be made before October 15 as per the CCMC Act,” said an official.
Taxes for more than 95 per cent of commercial properties were not paid before October 15. The Corporation does not have the manpower to seize the property of defaulters. Of the 11.7 lakh properties in the city, more than one third are commercial.
The civic body has to collect Rs. 650 crore in property tax during this half year. The Corporation will generate a list of assessees who have failed to pay their tax even 15 days after the deadline.
It is also likely to instruct officials to initiate measures to serve a warrant for failure to pay property tax.
The Corporation has to pay more than Rs.400 crore to contractors for major infrastructure projects completed in the city. If the tax is not paid by assessees, the movable property of the defaulters could be seized and sold for the amount of tax due.
More than 95% of establishments have not paid the tax though the due date was October 15
