The Hindu 20.01.2011
No going back on property tax: Mayor
Pulusu Janardhan Rao announces it amidst protests by the Opposition members
Mayor Pulusu Janardhan Rao said that there was no going back on the hike in property tax and appealed to members of all political parties to cooperate in the collection of revised taxes for development of the city.
After a marathon debate for more than four hours on ‘property tax' at the Council Hall of Greater Visakhapatnam Municipal Corporation (GVMC) on ‘property tax' at the Council Hall on Wednesday, the Mayor made this observation and left the hall amidst protests by the Opposition members.
The Opposition members, however, demanded roll back of the hike and staged a protest outside his chamber.
Earlier, the house witnessed heated exchanges between the ruling and Opposition members.
MLC MVS Sarma said that no pre-condition was set in the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) guidelines for release of funds.
He found fault with the ruling party members and the officials in trying to link the tax hike to release of funds.
He alleged that the officials were spreading a misinformation campaign that the JNNURM funds will be stopped if the tax was not hiked. Interrupting the MLC, Congress member Banala Srinivasa Rao wanted to know whether the former would make the people pay the revised tax if there was link between funds and tax hike. There were heated exchanges between the Opposition and ruling party members on the issue for sometime.
Deputy Mayor Dora Babu said that a Gazette notification was made and a G.O. was issued on property tax hike.
A note was also circulated among the council members but the amount of hike was not specified.
GVMC Commissioner V.N. Vishnu said that a tripartite agreement was reached with between the Government of India, State Governments and the local bodies for implementation of JNNURM. The MoU was non-negotiable but admitted that the reforms had not specify about the amount of revision in taxes but only wanted tax collection in a scientific manner
Telugu Desam Party Floor Leader in the GVMC Pattabhi wondered who was vested with the responsibility of revision of taxes -- the bureaucrats, the Government or the Council. CPI Floor Leader A.J. Stalin recalled that it was resolved by the council that the hike shouldn't be more than 50 per cent. Congress Floor Leader Behara Bhaskara Rao said “We had all either knowingly or unknowingly agreed to a 50 per cent hike in property tax and now we can't go back on it. JNNURM has led to the development of the city as never before and not respecting guidelines would mean losing crores of rupees.” Senior Congress Corporator Koppula Venkata Rao felt that instead of taxing the public, the corporation could generate revenue by collecting taxes from the Gangavaram Port and Visakhapatnam Steel Plant, reducing expenditure and not allowing contractors to form a ring and deprive the GVMC of its revenue.
