Even as the Tamil Nadu Government is claiming that the State’s investor-friendly policies are attracting hefty industrial investments across the State to create thousands of jobs, the exorbitantly hiked property tax by the rural local bodies is about to spell death knell for the already ailing marginal and small industries in the district guaranteeing the workers and their families’ daily bread.
As the major parts of the dry Manur taluk of the district are situated above rich limestone deposits, limestone mining and limestone powder manufacturing are major employment-generating activities in this region. Besides creating employment for the locals, especially for the unskilled and semi-skilled workforce, these units also generate sizable income to the local bodies through property tax.
As long as this property tax remained below the reasonable slab, it was a win-win situation for all concerned – owners of the limestone powder making units, workers and the village panchayats. While the owners managed to generate significant revenue from their units, the workers could get regular work and the local bodies received regular revenue through property tax.
After the government allowed the local bodies to revise the property tax, the small, marginal and medium industries are staring at bleak future as the local bodies have exorbitantly raised the property tax – up to 800%.
Owner of a limestone powder manufacturing unit in Manur taluk, who did not want to be identified, told The Hindu that the annual property tax of ₹12,000 for his factory had been revised to ₹1.02 lakh now.
“Of the 60-odd limestone and plastic industries functioning under Sethurayanpudhur and Madhavakurichi village panchayats, around 10 manufacturing units, which are already struggling to stay afloat, have been closed after these rural local bodies usuriously hiked the property tax,” he said.
Secretary of Tirunelveli District Small and Tiny Industries Association Sanjay Gunasingh, who is running a small industrial unit manufacturing engineering goods under the Nochikulam village panchayat near Palayamkottai, says the annual property tax of ₹50,000 he was paying to this panchayat had now been extortionately revised to ₹6 lakh a year!
“This is nothing but decimating the tiny, micro and small industrial units, which alone give more number of employment to rural poor – mostly semi-skilled and unskilled workers. The unmindful upward revision of property tax will certainly strangulate these rural manufacturing units very soon to leave the workers in the lurch,” Mr. Sanjay said.
Most of the affected investors are ready for paying the “reasonably hiked” property tax.
“However, without any discussion with the owners of small and micro industries, the local bodies have effected 600% to 800% hike in the property tax now, which is unbearable. The Ministers for Revenue, Local Administration, Marginal, Small and Medium enterprises and others should instruct the local bodies not to fleece the manufacturing units under their jurisdiction in the guise of tax collection,” Mr. Sanjay suggested.
When contacted, District Collector R. Sukumar assured that he was ready to look into the tax issue and initiate appropriate remedial measures by taking up the grievance with the higher-ups in Chennai to find amicable solution if the affected limestone powder and the engineering goods manufacturing units submit a comprehensive memorandum to him.
Published – January 23, 2026 08:10 pm IST
