Property tax, water charge likely to increase

Close to two lakh building owners in the city may have to brace for an increase in the property tax and drinking water consumption charge as the Coimbatore Corporation prepares to improve its revenue. If the Corporation Council approves it, the hike will come after nine years.

The civic body's Rs.13.80-crore deficit budget for 2007-08 tabled in the Council on Wednesday made out a strong case for a hike. By mentioning that the Central Government's Jawaharlal Nehru National Urban Renewal Mission for infrastructure development stressed better revenue, the Corporation indicated that a tax revision was just round the corner.

The budget, however, carefully avoided mentioning the quantum of increase that would help improve tax revenue. It would be left to the Council. Corporation Commissioner P. Muthuveeran told presspersons that the mission wanted the tax revenue to be huge enough to fund development works. At present, the tax revenue was only 20 per cent of the total income.

The Commissioner and other officials admitted that the accumulated tax arrears were close to Rs.80 crore. As for water charges, the budget pointed out that the Corporation ran up a huge loss because it bought water from the Tamil Nadu Water Supply and Drainage Board by paying a minimum rate of Rs.4.50 for 1,000 litres up to 50,000 litres. But, the Corporation collected only Rs.3.50.