Salem traders threaten to shut shops if Corporation does not slash taxes

Traders in Salem city have urged the Corporation to reduce the property tax fixed for commercial buildings and warned of strike if their demand is not met.

The Salem Corporation’s annual tax revenue for the current fiscal is expected to be ₹207 crore, which includes property tax collection from 2.15 lakh assessees, professional tax from 28,260 assessees, and vacant land tax from 17,290 assessees. Traders, however, allege that property tax for commercial buildings is not calculated properly, and the tax fixed by the civic body is exorbitant.

Salem City Chamber of Commerce general secretary A. Jayaseelan said the Corporation has fixed ₹28 per sq. ft as property tax for commercial buildings in the city, which is higher than that in Coimbatore and Tiruchi cities, where the maximum tax is ₹16 per sq. ft.

“The Salem Corporation has not categorised industrial and commercial structures properly. We met the Corporation officials more than 20 times in this regard but no action was taken,” he alleged.

Stating that the Salem Corporation passed a resolution before the elections on the demand to reduce the taxes, Mr. Jayaseelan said that following elections, the government did not act on the resolution. Now, the Corporation is demanding taxes it had fixed earlier. “If the taxes are not reduced over the next 10 days, the traders will shut their shops,” Mr. Jayaseelan warned.

Ward 34 Councillor Esan D. Elango (DMK) alleged that the areas were not properly classified as A, B and C centres. The tax collected by Salem Corporation is higher than that in other cities. The resolution passed to reduce the taxes was also not sent to the government properly. The view expressed during the council meeting was not updated in the minutes. The Corporation should re-classify the areas properly and fix the taxes, Mr. Elango added.

According to Salem Corporation officials, property tax was hiked in Salem city after 20 years in 2022. Resolutions were passed in the council meeting in this regard and taxes are collected based on it.