Salem traders threaten to shut shops if Corporation does not slash taxes
Traders in Salem, India, are threatening to strike and close their shops unless the local Corporation reduces property taxes for commercial buildings. They argue that the current rates are disproportionately high compared to neighboring cities and that the civic body has failed to properly categorize industrial and commercial structures.
Why it matters
This dispute highlights the growing tension between local municipal revenue requirements and the economic burden on small business owners, potentially disrupting local commerce and public services.
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.
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