Chennai
Large multi-national firms and IT companies in the city may have to start shelling out a higher amount as property tax from the next financial year. The Corporation of Chennai, which has found that IT companies earning higher profits than local grocery stores come under the same tax bracket, has decided to look into the issue.
A revamp in the gradation system and tax slabs is likely. “We are going to meet and discuss changes in the classification of buildings. IT parks and MNCs maybe brought under a special category or a separate slab could be created for them,” said a revenue officer. Corporation sources said it might require an amendment to the Corporation Council Act, but that it was subject to government approval.
Presently, there are different tax slabs for commercial and residential properties and a separate slab for special commercial buildings. “Special commercial buildings, including movie theatres, marriage halls, lodges, hotels and restaurants, pay higher tax than normal commercial buildings,” said the official.
The council has found that some of the top shopping malls, multi-national companies and IT parks have been categorized as ordinary commercial buildings. “Some of the companies’ profit margins are higher than theatres and hotels, but they are still not part of the special category,” said the mayor.
The council, which plans an inquiry into why taxes were not revised in 2003 and 2008, has been toying with the idea of raising property taxes, its main source of income, for over a year now. Against the targeted 558 crore, it had collected only 227 crore till January 31.
Source: The Times of India, Chennai
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