The Tax Payers' Association has condemned the latest Government Order No. 179 which exempts people from payment of tax for land less than 200 square meters.

The association president V. Sambi Reddy in a press release here on Friday said that it provided for initially a person paying 10 per cent as tax for construction of a house in an area of 300 square meters and above.

This was decreased to 100 square meters with G.O. No. 450. “We expressed our concern at that time and wrote a letter to the Government as well and submitted a memorandum to the Municpal Commissioner,” said Mr. Sambi Reddy.

“Our letter had then stated that nobody would be willing to pay tax, illegal constructions will be on the rise and result in the rise of corruption as well,” he observed.

Eventually the Government cancelled the G.O. No.450 and then increased the land area for tax payment from 100 square meters to 200 square meters.

Temporary relief

“This is just a temporary relief but not the solution,” he opined. In order to prevent illegal construction there were two options, one was to amend the building rules for residential dwellings on amount of setbacks and the second was to pass an order to stop the construction work at the building stage itself, he suggested.

He appealed to the Government to increase the minimum land area for tax purposes back to 300 square meters to decrease the number of illegal constructions.