Andhra Pradesh

Revoke G.O. on property tax, VCCI submits representation to CM

The Vizagapatam Chamber of Commerce and Industry(VCCI) has submitted a representation to the Chief Minister urging him revoke the G.O. on property tax, as it would burden the common man.

Addressing a media conference along with members of the Federation of the Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), Resident Welfare Associations, Confederation of Real Estate Developer's Associations of India (CREDAI) and Tax Payers Forum, here on Saturday, the VCCI members said that it was not the right time to increase any taxes, as people are struggling and yet to come out of the pandemic situation.

The State government in November, last, had passed an order that property tax, with effect from April 1, will be collected on capital value of the property. The percentage varies from 0.10% to 0.50% for residential and 0.20% to 2% for commercial properties.

They pointed out that the rental values all over the State fell by 20% for residential buildings and 50% for commercial buildings. In fact, many commercial establishments closed and owners are not getting any income on these properties. They said that many States have slashed the tax rates by 50%, keeping in view the economic situation.

The members said that majority of the business establishments were already in deep financial crisis and unemployment is huge.

Though the Minister of Municipal Administration assured that the increase will be maximum to an extent of 20%, people are not in a position to pay any additional taxes. Any move to hike property taxes would come as an added jolt, they said.

The VCCI members said that in the representation they have asked the CM to continue the rental value system for tax and to consider the increase of property tax not more than 10% from April 2022.

“We also request the Chief Minister not to increase the property taxes every year along with market value of the property and to consider the increase every five years,” said VCCI president G. Veeramohan.

He also said that in the last 10 years, the State government had increased the market value of properties in the State by 5 to 10 times. “If we had been using the capital value system, then property tax in the last 10 years would have increased by 10 times, which would have been an unbearable burden on property owners,” said Mr. Veeramohan.

Secretary of VCCI Ravi Godey, Dharmender Varada, Secretary CREDAI, and Ms Jeeja Valsaraj from RWA, spoke.

This article is closed for comments.
Please Email the Editor

Printable version | Mar 6, 2021 6:09:08 PM |

Next Story