AP Collects Rs 2,300 Crore Property Tax Against Total Dues of Rs 5,187 Crore

Interest waiver fails to boost compliance; govt, vacant lands among defaulters

Update: 2026-03-31 18:43 GMT
Civic bodies struggle as tax dues remain unpaid despite incentives. (File Image)

Vijayawada: Andhra Pradesh has collected property tax of about 2,300.80 crore out of the total annual dues of Rs 5,187.42 crore by Tuesday evening, towards the end of the financial year.

The state government had given a 50 per cent waiver on interest of all tax dues in case the total dues are paid, at a time, for the second consecutive year. This was to encourage the taxpayers to avail the opportunity and clear the dues. However, less than 50 per cent of collections was realised out of the total estimated dues.

The municipal administration department is facing a tough task to ensure tax compliance by the public. The major defaulters include those who occupy central and state government buildings for functioning of various offices.

“In some districts, property tax payment is not prompt from even district collectorates and offices of SPs. So is the case with several central government offices,” a tax official explained.

These apart, some buildings are entangled in legal disputes. There is no property tax collection from them.

Another major concern is the absence of proper payment of tax on vacant lands. In several cases, their owners are out of station, they stay elsewhere or are abroad, and their contact numbers are not available. This results in non-payment of VLT for a long time.

Moreover, such vacant lands are causing major troubles to the civic authorities. Weeds grow there, and snakes, pigs and stray animals move around, causing concern to the local residents.

Non-payment of water charges is another major concern for the municipal authorities. Many beneficiaries avoid payment.

A senior official said, “If power bills are not paid before the due date, there will be a fine and even disconnection of the supply. In the case of municipal administration, we have no provision to do so.”

Notably, the Rajamahendravaram region, covering five municipal corporations and 29 municipalities located in erstwhile East Godavari, West Godavari and Krishna districts, recorded a property tax collection of about Rs 500 crore against the total due of Rs 664 crore. Payments can be done in the normal course till midnight.

Rajamahendravaram regional tax director Naga Narasimha Rao said, “We have collected property tax up to 75 per cent so far. The waiver of 50 per cent interest on total tax dues helped to some extent in people clearing the dues in the region.”

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