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The Tamil Nadu government has increased the property tax in various corporations, municipalities and panchayats in the range of 25-150%, according to an official statement.

The state government, however, argued that despite the increase in tax, the rates are still lower than other metro cities.

In Chennai corporation, 50% property tax will be charged for areas below 600 sq ft, 75% for 600-1,200 sq ft, 100% for 1,201-1800 sq ft and 150% for those above sq ft.

The government said revision in property taxes was based on the recommendation of the 15th finance commission.

In an official release, the government said inflation and various other economic indicators rose over time, while the property tax remained the same. The release further said the share of own source of revenue of urban local bodies have declined drastically during the period, while the revenue expenditure has increased manifold putting municipal finances under severe strain.

"Considering the financial needs of the urban local bodies to provide civic infra and basic amenities to the citizens, the mandatory conditions specified by 15th Finance Commission for availing grants and the entry level conditions for receiving funds under various central schemes and also the report of the committee, the government has decided that the general revision of property tax in all municipalities and town panchayats may be taken up immediately," an official release said.

Opposition AIADMK lashed out at the DMK government for raising the property tax, saying the hike is just a trailer of what many more such things to come in the future.

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