Not being able to collect the property tax it has hiked, the Greater Visakhapatnam Municipal Corporation is caught in a predicament and has been awaiting the government's nod to implement it.
Awaiting the government's approval that brings in additional revenue, the GVMC has not generated the demand notice for property tax for the current financial year. Since the demand has not been generated on its computers, the property tax is not being collected from the assesses.
The average property tax collection nets anywhere between Rs.2 crore to Rs.3 crore every month and by not collecting it the corporation has to make do with less revenue thus far in this financial year.
The increase in property tax is an administrative decision which the Commissioner is empowered to effect.
After the municipal corporation passed a resolution increasing the property tax, it had been sent to the government as its permission was required to increase property tax on residential buildings in view of its earlier order restraining hike.
The approval is now awaited from the highest quarters in the State Government.
The municipal corporation normally generates demand by the quarter though many still pay it half-yearly.
Contrary to the practice, it has not generated the demand notice so far and property tax payments are not accepted in spite of the first quarter entering the third month.
Waiting for approval
“Once the government gives its approval, the demand notice will be issued and the property tax collected,” said an official expressing hope that the approval would be received by the month-end.
The property tax hike approved by the corporation in February is expected to bring in additional revenue of Rs.20 crore. The hike is capped at 50 per cent for all buildings and 40 per cent for non-residential buildings above 25 years of age.
