Andhra Pradesh

Resident Welfare Associations oppose ordinance on property tax

The Andhra Pradesh Federation of Resident Welfare Associations (APFERWAS), an umbrella organisation representing RWAs in the State, has strongly opposed the recent Ordinance no.16 brought out by the State government on the new methodology of levying property taxes.

According to the newly-amended municipal law, property tax will be levied based on the market price of the property as against the earlier method of levying property tax based on rental value of the property. This new tax regime comes into effect from April 2021, and over a short period of time there is a likelihood of a tenfold increase in property tax, because the new tax gets reviewed and increased annually when the registration department increases the market value of the properties annually. Presently, tax is being levied only on the constructed building whereas under the new law, tax will be levied also on the land on which the building is built, Uday Shirname, president, APFERWAS, said in a statement.

This ordinance will cause great hardship to all classes of people, in particular the lower and middle income groups and senior citizens who comprise the majority of RWAs all over the State. It is shocking that at a time when the common citizen is reeling under severe economic and mental stress owing to the pandemic, the government instead of giving relief is burdening its citizens with additional taxes, without improving its services.

He said that APFERWAS was opposed to the ordinance and demanded its immediate withdrawal.

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Printable version | Jan 16, 2021 12:12:56 PM | https://www.thehindu.com/news/national/andhra-pradesh/resident-welfare-associations-oppose-ordinance-on-property-tax/article33196935.ece

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