The Hindu 12.02.2010
GVMC hikes property tax
Staff Reporter
| An additional revenue of Rs.20 crores is expected from the increase |
Hike for residential assessments to be capped at 50 per cent of the prevailing tax
Members want the GVMC to get taxes from Gangavaram port that got a waiver
Novel protest: TDP and CPI (M) corporators sitting in front of the Mayor’s podium opposing the hike in property tax at the GVMC meet in Visakhapatnam on Thursday.
VISAKHAPATNAM: Close on the heels of increase in water charges, the Greater Visakhapatnam Municipal Corporation hiked property tax for all categories of assessments.
Mayor Pulusu Janardhana Rao announced, after a lengthy discussion and amid a sit-in protest by the Opposition at the GVMC meeting on Thursday, that the hike for residential assessments would be capped at 50 per cent of the prevailing tax while it would be 40 per cent for non-residential buildings above 25 years of age and 50 per cent for those below it. An additional revenue of Rs.20 crores is expected from the increase.
Earlier, members wanted the corporation to get the grants due from the State Government, realise arrears from the corporate sector and caught in legal wrangles. All the members wanted the GVMC to get taxes from Gangavaram port that got a waiver from the State Government.
TDP floor leader Nalluri Bhaskara Rao and CPI(M)’s B.Eswaramma said that they would continue protests against the hike. Members disputed authorities saying that no revision was taken up after 1993 and said at Gajuwaka it was revised in 2002, the merged villages in 2006 and for non-residential properties in 2007.
Municipal Commissioner V.N. Vishnu expressed the hope that Rs.40 crores assigned revenue from the State Government would be realised by March 31.
Arrears
Deputy Commissioner (Revenue) in charge K. Ramesh said a total of Rs.59 crores was in arrears including Rs.27 crores from the steel plant pending before the court, Rs.10 crores from the State and Central Government offices, Rs.15 crores caught in litigation. The property tax demand for half-year from 113 major and medium industrial units was Rs.8.18 crores.
The outstanding amount from the units for the past 10 years was Rs.43 crores and the steel plant alone owed Rs.40 crores.
Kona Tata Rao (TDP) wanted the corporation to realise the 90 per cent profession tax from the State Government and insist on spending corporate social responsibility spending on local areas. Relevant taxes should be levied on the units in the SEZs.
CPI’s A.J. Stalin said tax calculation based on monthly rental value was applicable only to new buildings. Besides, government had always capped the percentage of hike. Deputy Mayor K. Dorabbai wanted the hike to be effected as a total of Rs.1,000 crores, including Rs.500 crores, towards JNNURM matching was required in the next one year.
