Urban News

The Hindu 16.02.2010

Roll back property tax hike: TDP

Staff Reporter

VISAKHAPATNAM: In an unprecedented action, the TDP on Monday went on a sit-in protest in the Chamber of the Municipal Commissioner demanding a rollback in the property tax hike. The protest lasted for about two hours and was called off only after an assurance from Mayor Pulusu Janardhana Rao that a proposal for reducing the tax would be placed in the Council.

The leaders stormed into the chambers after a dharna at the Mahatma Gandhi statue in the morning with a good number of supporters and stayed put in the chambers demanding that the Commissioner and the Mayor talk to each other and fix a date for the Council meeting to effect a rollback. Monday is a regular ‘Grievance Day’ at the GVMC.

They spoke to the Commissioner, who was in New Delhi for a JNNURM meeting, and the Mayor. TDP MLA V. Ramakrishnababu and former MLA Chengala Venkatrao told the Mayor that unless he came and announced a date for the Council meeting they won’t move an inch.

Former minister Bandaru Satyanarayana Murthy wanted the corporation to plug revenue leakages instead of burdening the poor. He recalled the charges of the Deputy Mayor in solid waste disposal. There was a limit to the increase that could be effected at a go and 50 per cent was too steep. TDP Floor leader Nalluri Bhaskara Rao, party leaders Bharanikana Rama Rao, V. Ganesh Kumar and around 15 corporators squatted on the floor of the chambers along with protestors.

At its meeting on February 11, the Council resolved to hike property tax by 50 per cent to all assessments and 40 per cent for non-residential properties above 25 years of age amid protests by TDP and CPI(M).

Protesting TDP leaders did not respond to the pleas of Additional Commissioner (General) S. Krishna Murthy and the police that only leaders stay in the chambers and give up squatting. The leaders left for the Mayor’s chambers only after ensuring that he turned up.

Responding to the protest, the Mayor first said the proposal would be taken up and a majority view obtained. But leaders refused it saying they resorted to the protest since the Opposition lacked numbers. The Mayor said in response to people’s views and the protest of TDP the issue would be placed before the Council. He could not take any decision and it was for the Council to take one.

Warning

Later, Mr. Venkatrao warned that a siege would be laid again if the Mayor went back on his word.

The Hindu 12.02.2010

GVMC hikes property tax

Staff Reporter

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.