New method of fixing property tax will not burden people: Botcha
‘It will not be more than 15% of the existing tax’
Minister for Municipal Administration Botcha Satyanarayana has said that the revised method of fixing property tax is intended to make urban local bodies financially self-sufficient, and, at the same time, will not burden the people.
Addressing the media here Wednesday, Mr. Satyanarayana said the State government, after considering the suggestions of the Central government, had taken a decision to change the system of levying property tax to strengthen the urban local bodies (ULBs) and provide better services to the people.
“At present, property tax is being levied on the annual rental value basis (ARV system), where three months rent is levied as tax per annum. The government has revised this method and will levy tax based on the capital value (CV) of the property,” he said, and added that the system was already being implemented in Karnataka, Tamil Nadu and Maharashtra.
“The percentage of tax so fixed will be between 0.10% and 0.50% of the CV for residential buildings and between 0.2% and 2% for non-residential buildings,” he added.
“We have no intention to burden the people. The G.O also states that the increased tax will not be more than 15% of the existing tax,” the Minister said.
“Only ₹50 will be levied as property tax for houses with a plinth area less than 375 sq. ft. Property rights will be given only if taxes are paid,” he added.
The Minister further said that the government decided to levy water tax between ₹100 and ₹350 per kilolitre per month for households (domestic) and between ₹30 and ₹50 per kilolitre for bulk usage (such as apartments), between ₹60 and ₹140 per kilolitre for commercial purposes and between ₹40 and ₹80 per kilolitre for industrial users.
“The revised taxes are only to cover the ONM costs for supply of water but not for additional income to the municipalities,” he said.
The Minster also said that the new sewerage taxes were nominal and it would not burden the people. He reiterated that the revenue generated by municipalities would be spent on the development works of the same municipality and would not be used for other works.