The Hindu 06.08.2014
VMC plans to revise property tax
Proposals likely to be submitted at the council meeting today
The cash-starved Vijayawada Municipal Corporation is
planning to revise property tax for both residential and commercial
properties in the city. Authorities are likely to present the proposal
during the first meeting of the VMC council slated on Wednesday.
There
are 13 residential and commercial zones in the corporation limits and
authorities launched a pilot survey in three circles – 1, 18 and 32 on
how to go about the property tax revision. The hike, according to
sources, is expected to be considerable depending on the zone and
different parameters like slum areas, nature of construction,
residential and commercial structures.
At present,
the corporation generates annual property tax revenue of Rs.74 crore and
the proposed revision is expected to net another Rs.30 crore.
Authorities list out a few reasons for the need to revise property tax.
The
main reason cited behind the proposed revision is rising expenditure
and declining revenues. The annual revenue generated by the corporation
is Rs. 220 crore, while its expenditure has already crossed Rs. 270
crore. This apart, the corporation has contracts payment dues to the
tune of Rs.100 crore, ESI and PF payments.
Actually,
property tax has to be revised for five years. It was last revised in
2002 and since then there has been no revision for different reasons –
administrative and political. Though it is essential to revise the tax,
much will depend on council’s approval, says a senior official of VMC.
But
even before the authorities could think about presenting the proposal,
there is strong opposition from residents. “A few corporators are
discussing about the issue but authorities should think again about the
proposal. Prices of essential commodities are already sky rocketing and
this will be an additional burden on residents. We will oppose it,” says
V. Sambi Reddy, president of Tax Payers Association.
