Salem traders threaten three-day bandh over steep property tax hike

SALEM: The Salem All Traders' Association has threatened a three-day shop closure if the Salem corporation fails to withdraw the steeply rose property tax within a week, alleging that a number of commercial establishments have been burdened with disproportionately high taxes, with.

Key points

• They remarked there were around 40, 000 commercial establishments within the corporation limits, but the revised tax had reportedly been imposed on only around 3, 000 establishments.
• Before the revision, some establishments were paying only around `4, 000 to `5, 000 as property tax, but they are now being asked to pay the tax in lakhs.
• After which they had repeatedly demanded that the hike be withdrawn, the traders remarked property tax in Salem corporation limits was revised sharply in 2022.
• They demanded that the corporation review the revised assessments and withdraw the steep hike.

After which they had repeatedly demanded that the hike be withdrawn, the traders remarked property tax in Salem corporation limits was revised sharply in 2022. A resolution was additionally passed at a corporation council gathering and sent to the administration, and traders were earlier advised to continue paying the old tax amount until further orders were issued.

Nevertheless, the association alleged that after the change in administration and the appointment of new corporation office-holders, commercial property owners were being directed to pay the revised tax within the stipulated period and were being cautioned of action, including property seizure, if they failed to do so.

At a session of the All Traders' Association, representatives alleged that the corporation had climbed property tax at a much higher rate compared with other major corporations and had failed to respond to their repeated demands for its withdrawal.

They remarked there were around 40, 000 commercial establishments within the corporation limits, but the revised tax had reportedly been imposed on only around 3, 000 establishments. It they termed discriminatory.

"Before the revision, some establishments were paying only around `4, 000 to `5, 000 as property tax, but they are now being asked to pay the tax in lakhs. There are additionally a number of discrepancies in the assessment, with some smaller establishments being levied higher taxes than larger properties, " noted A Jayaseelan, secretary of the Salem All Traders' Association.

According to The traders further, in a number of cases, the property tax fixed by the corporation was a number of times higher than the rental income generated by the building, making it challenging for property owners and traders to bear the extra financial burden. They demanded that the corporation review the revised assessments and withdraw the steep hike.

Jayaseelan remarked the corporation should take a decision on withdrawing the hike within a week, failing which the traders would launch a three-day shop closure throughout Salem in protest.

Taken together, the developments around salem traders threaten three-day bandh over steep property tax hike point to a situation that is still moving, and the coming days should bring more clarity.