The Greater Chennai Corporation (GCC) is setting its sights on an ambitious property tax target of 500 crore during the first half of the 2025-2026 fiscal year, building on the record-breaking success of the previous year.
In 2024-2025, the city achieved an unprecedented 2,023 crore in property tax collections, the highest in the last 16 fiscal years. This surge has highlighted the growing efficiency of the GCC’s tax collection mechanisms and the public’s response to incentivised payment schemes. During the incentive period, from April 1 to 30, the civic body offers property owners a 5% discount on their tax dues, with a maximum rebate of 5,000 rupees. The initiative has encouraged early payment and significantly improved collection figures. In 2023-24, for example, GCC collected 879 crore during the first half, followed by 1,144 crore in the second half. City revenue officer K. Bhanuchandran noted that the record-breaking collection in the last fiscal was made possible by a strong showing during the incentive period, which alone brought in 379 crore. This year, the GCC has raised the stakes, setting a target of 500 crore in the first half of 2025-2026. The tax department’s ongoing push to streamline operations includes a significant move to privatise statistical record-keeping. By outsourcing the maintenance of property and professional tax data, the GCC aims to increase efficiency in tax collection and administration. A tender was floated in March for a company to oversee this task for one year, with the ultimate goal of improving the ease of doing business and increasing the accuracy of tax records.
Further complementing this effort, the civic body is embracing modern technology to enhance taxpayer engagement. Plans are already underway to send automated tax reminders through WhatsApp, complete with QR codes to facilitate immediate online payment. The integration of these digital tools is expected to make the payment process more accessible, particularly for the city’s growing population of tech-savvy citizens.
The response from property owners to the GCC’s incentive schemes has been overwhelmingly positive. Many residents, like C. Raghukumar from Perambur, have voiced their satisfaction with the discounts and expressed the desire for even greater incentives to encourage timely payments. “By paying our taxes on time, we were able to save some money and avoid penalties. I feel that the incentive period or the discount percentage should be increased to encourage more people to pay at the earliest,” said Raghukumar. This sentiment echoes the growing appreciation for the GCC’s proactive efforts to foster a culture of timely tax payment. In addition to the economic benefits, the property tax collection drive is a crucial component of the city’s broader fiscal health. With an ever-growing population and increasing demands for civic infrastructure, the GCC’s ability to raise funds through tax collections is vital for financing projects that improve public services, roads, waste management, and other essential services. Tax collection has become an important tool in ensuring that the city is able to meet the demands of its residents while also preparing for future growth.
As the GCC seeks to meet its ambitious target for 2025-2026, it is evident that the combination of incentives, modern technology, and improved administrative processes has begun to bear fruit. However, continued success will depend on how effectively the corporation can sustain this momentum and keep property owners engaged in the tax-paying process. By addressing challenges related to tax compliance and ensuring transparency in collection efforts, the GCC is laying the foundation for a more financially secure and sustainable Chennai. With the success of the past year as a strong indicator of future potential, all eyes are now on whether the GCC can continue to meet its targets while fostering a greater sense of civic responsibility among Chennai’s residents.
Chennai Property Tax Collections Set for Growth in 2025-2026
