A.P లో Property tax hike ఆపండి రా అయ్యా అంటున్న CPI(M)

[andhra_jp]

CPI(M) urges Andhra Pradesh government to repeal property tax hike

Party’s State secretary V. Srinivasa Rao writes to Chief Minister N. Chandrababu Naidu to take necessary steps to repeal the Municipal Amendment Act 44/2020, which enables the tax calculation of a property based on its capital value instead of the rental value

CPI(M) State secretary V. Srinivasa Rao wrote a letter to Chief Minister N. Chandrababu Naidu urging him to take necessary steps to repeal the Municipal Amendment Act 44/2020 related to the increase in property tax in urban areas and to halt the property tax hike.

In the letter on Sunday, Mr. Rao said that the previous YSRCP government altered the method of assessing property tax in towns and cities and amended the Municipal Corporation Acts. The amendment enabled a new method of calculating property tax based on the capital value of the property, replacing the earlier system of assessment based on rental value. 

This amendment was made to secure an additional loan of 0.25% from the Central government. This amendment placed a permanent burden on the people to secure a one-time loan, he said. 

At that time, widespread opposition to this move arose across the state. The TDP also opposed it and promised during the elections that it would review the property tax if it came to power. People expected a reduction in the tax burden. However, the review has not been done to this day. Taxing based on rental value is fair, but taxing based on capital value is not, he said.

‘Already doubled’

Linking property tax to the capital value means that every time the government increases the market value of properties, the property tax will also rise. Currently, property tax is increased by 15% each year. Since the introduction of this law, property tax has already doubled, and it continues to rise. Even if there are no changes made to the building, or if a vacant plot is sold, the tax is levied on the capital (market) value at that time, which is becoming a heavy burden. Additional tax is imposed on buildings under the pretext that they lack building permits.

House tax penalty

As the financial year 2024-25 is coming to an end, officials are pressuring people to pay their house tax. They are threatening to disconnect water and drainage connections if the tax is not paid immediately. In some places, these connections have already been cut off. Collecting tax with a penalty before the financial year ends is not reasonable. Therefore, I request you to cancel the 24% penalty and allow people to pay taxes without penalty until the end of May, he said adding, “I request that you repeal the Amendment Act 44/2020 and G.O. No. 198, which have become a burden on the people. I also urge you to immediately issue orders halting the 15% property tax hike from April and to issue an ordinance repealing Amendment Act 44/2020.”