Traders in Salem have issued a 10-day ultimatum to the Corporation to reduce property taxes for commercial buildings. They claim the current rates are significantly higher than those in Coimbatore and Tiruchi.
- Salem traders are protesting the ₹28 per sq. ft. commercial property tax.
- Tax rates in Coimbatore and Tiruchi are much lower at ₹16 per sq. ft.
- A strike threat has been issued if demands are not met within 10 days.
- The Salem Corporation expects ₹207 crore in total annual tax revenue.
A major economic standoff is brewing in Salem as local traders have threatened to shut down their businesses if the Municipal Corporation does not immediately slash property tax rates for commercial buildings. The traders' body has expressed deep resentment over what they term as "exorbitant" and "unfair" taxation policies.
Disparity in Taxation Rates
The core of the dispute lies in the massive discrepancy between Salem's tax rates and those of neighboring cities. A. Jayaseelan, General Secretary of the Salem City Chamber of Commerce, pointed out that the Corporation has fixed the property tax at ₹28 per sq. ft. for commercial structures. In stark contrast, cities like Coimbatore and Tiruchi levy a maximum of only ₹16 per sq. ft.
Why This Matters
BozokMedia analysis shows that such fiscal disparities can lead to a migration of commercial activities to neighboring cities, ultimately eroding the local tax base and stifling the regional economy of Salem.
The Chamber of Commerce alleges that the Corporation has failed to properly categorize industrial versus commercial structures. Despite meeting officials more than 20 times to resolve these classification errors, the traders claim no meaningful action has been taken by the civic body.
The traders' ultimatum highlights a growing disconnect between municipal revenue goals and the ground reality of local business sustainability.
Adding political weight to the protest, Ward 34 Councillor Esan D. Elango (DMK) criticized the Corporation's classification system. He argued that the areas have not been correctly categorized into A, B, and C centers, leading to inflated tax assessments. Furthermore, he alleged that a resolution previously passed to reduce taxes was not properly communicated to the state government.
Historical Background
According to official records, the Salem Corporation implemented a property tax hike in 2022, marking the first significant increase in the city in over 20 years. While the Corporation maintains that these hikes were legally passed in council meetings, the traders view this as an undue burden on the post-pandemic business recovery.
| City | Max Property Tax (per sq. ft.) |
|---|---|
| Salem | ₹28 |
| Coimbatore | ₹16 |
| Tiruchi | ₹16 |
Frequently Asked Questions
Question 1: Why are the traders protesting?
Answer: They are protesting against the high property tax of ₹28 per sq. ft. for commercial buildings, which is much higher than in other cities.
Question 2: What is the deadline given by the traders?
Answer: The traders have given a 10-day ultimatum to the Corporation to reduce the taxes.
