AP Govt Announces 50% Interest Waiver on Property Tax Arrears

The scheme, announced by the Municipal Administration and Urban Development (MA&UD) department, will be implemented across all municipalities and municipal corporations.

Taxpayers can avail the waiver by clearing 100 per cent of the principal dues along with the remaining 50 per cent of the interest in a single payment. The government said the scheme will remain in force till March 31, 2026. It ruled out the extension of the scheme.

The government clarified that interest already paid will not be refunded. It will, however, be adjusted against future dues as per rules.

Officials said the measure is to ease the burden on citizens while enabling urban local Bodies to recover long-pending revenues and strengthen the delivery of civic services.

The defaulters include state and central government institutions and urged them to clear dues.

The scheme is expected to improve compliance and help urban local bodies qualify for performance-linked grants, including under Finance Commission frameworks.

Multiple payment options are available, including digital platforms, such as Mana Mitra WhatsApp services and the PuraMitra application. Payments can also be made at the municipal offices.

Principal secretary (MA&UD) S. Suresh Kumar described the initiative as a reset mechanism for urban financial discipline. He asked taxpayers to utilise the scheme within the stipulated time.

State government has said enforcement measures under the Andhra Pradesh Municipalities Act, 1965, and the Municipal Corporations Act, 1955, will be intensified after the deadline, including levy of full interest and penalties, recovery proceedings, property attachment and legal action.