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New property tax move in Andhra Pradesh draws flak

The state government seeks to raises its revenues as part of the reforms proposed by the central government

ANANTAPUR: The Federation of Anantapur District Residents Welfare Association has demanded the state government withdraw the decision to hike
property taxes. It has also raised objections to the draft notification for levy of property tax on capital values of both building and land.

According to the new system, the property tax is levied based on the market price of the property as against the earlier method of levying tax based on the rental value of the property. The state government seeks to raises its revenues as part of the reforms proposed by the central government.

“The GO Ms.No 198 issued by the municipal administration and urban development department changed the system of property tax assessment from Annual Rental Value to Capital Compared to the old structure, there would be a 10 to 15 per cent increase in the property tax with the newly revised tax structure,” said Dr M. Virupaksha Reddy, the president of Federation of Anantapur District Residential Welfare Association. They submitted a memorandum to the Municipal Commissioner to withdraw the decision. He demanded that the state government withdraw its recent amendments to the municipal laws and restore the earlier system of levying taxes.

“The property tax has been raised in an undemocratic manner, when there was no elected council and even public opinion was not taken into account. We will form a state-wide united action committee to intensify the stir until the new reforms are taken back,” said Dr M. Suresh Babu, a representative of the Federation of Residential Welfare Associations.

In May last year, the central government enhanced the borrowing limits of the states from 3 to 5 per cent of their Gross State Domestic Product (GSDP) as a COVID-19 special package. However, the 1 per cent of the increased limit was linked to four reforms in the universalisation of ‘One Nation One Ration card,’ ease of doing business, power sector and reforms in urban local bodies. Both the associations demanded that the corporation defer the entire process relating to the property tax mentioned in the said draft notification.

( Source : Deccan Chronicle. )
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