The cash-starved Vijayawada Municipal Corporation is planning to revise property tax for both residential and commercial properties in the city. Authorities are likely to present the proposal during the first meeting of the VMC council slated on Wednesday.
There are 13 residential and commercial zones in the corporation limits and authorities launched a pilot survey in three circles – 1, 18 and 32 on how to go about the property tax revision. The hike, according to sources, is expected to be considerable depending on the zone and different parameters like slum areas, nature of construction, residential and commercial structures.
At present, the corporation generates annual property tax revenue of Rs.74 crore and the proposed revision is expected to net another Rs.30 crore. Authorities list out a few reasons for the need to revise property tax.
The main reason cited behind the proposed revision is rising expenditure and declining revenues. The annual revenue generated by the corporation is Rs. 220 crore, while its expenditure has already crossed Rs. 270 crore. This apart, the corporation has contracts payment dues to the tune of Rs.100 crore, ESI and PF payments.
Actually, property tax has to be revised for five years. It was last revised in 2002 and since then there has been no revision for different reasons – administrative and political. Though it is essential to revise the tax, much will depend on council’s approval, says a senior official of VMC.
But even before the authorities could think about presenting the proposal, there is strong opposition from residents. “A few corporators are discussing about the issue but authorities should think again about the proposal. Prices of essential commodities are already sky rocketing and this will be an additional burden on residents. We will oppose it,” says V. Sambi Reddy, president of Tax Payers Association.
TAX BURDEN
Current tax revenue: Rs.74 crore
Proposed revision is expected to net another Rs.30 crore There are 13 residential and commercial zones in corporation limits
Pilot survey in three circles – 1, 18 and 32
Quote:
Revision of tax will depend on council’s approval
Senior official of VMC
This will be an additional burden on residents. We will oppose it
V. Sambi Reddy
Tax Payers Association president
