VMC earns Rs 238 cr from taxes

Vijayawada (NTR district): For the first time in the history of Vijayawada Municipal Corporation (VMC) in recent times, the authorities have managed to collect 89 per cent of tax collections such as property tax, vacant land tax, water charges and sewerage taxes. By the collective efforts of the VMC officials and staff as well as support of the citizens (taxpayers), the VMC realised over Rs 238.08 crore through tax collections for the fiscal year of 2022-23.

Compared to 2021-22 fiscal year, the civic body registered around 42 per cent additional tax collections in all sorts of taxes in 2022-23. In the preceding year, the authorities collected Rs 71 crore additional tax collections as against 2021-22 year. The tax collections were confined to Rs 167.4 crore only in 2021-22.

With this achievement, the VMC stood in the top three places across the State in terms of tax collections.

2,08,010 assessments

The VMC has 2,08,010 property tax assessments for the year of 2022-23. The assessed property tax demand of above assessments had been Rs 150.39 crore. Out of 150.39 crore, the authorities succeeded in collecting Rs 134.09 crore property tax from the citizens in the preceding year.

In fact, in 2021-22 property tax collections were Rs 104 crore against the demand of around Rs 140 crore. When compared to previous year (2021-22), the VMC could collect 28 per cent additional tax collections in 2022-23.

Likewise, there has been a huge surge in the collection of vacant land tax (VLT) in 2022-23. There are about 15,300 VLT assessments in the city limits. The authorities have racked up an amount of Rs 35.27 crore VLT during last year. In terms of VLT, the authorities collected 115 per cent extra taxes compared to 2021-22 fiscal year. In that year, the VLT collections were Rs 16.19 crore.

Similarly, the water charges collection was also increased by 27 per cent in 2022-23. The authorities collected Rs 36.22 crore as water charges from 1.17 lakh assessments. However, water tax collection was Rs 28.33 crore in 2021-22.

Correspondingly, the sewerage tax collection was also hiked by 94 per cent in the preceding year. The authorities collected Rs 20.47 crore sewerage tax collection from 41,275 assessments.

Sewerage tax collection was only Rs 10.52 crore in 2021-22 fiscal year. Besides, the VMC authorities also collected Rs 12.03 crore as water meter charges from 5,605 assessments and it was Rs 7.81 crore in the fiscal year of 2021-22.

Special focus on tax collections

In order to achieve targets, VMC Commissioner Swapnil Dinkar Pundkar put special focus on tax collections. He appointed 40 HODs of VMC as special officers to collect taxes from the government and long pending assessments. He also appointed another 50 employees to help revenue officers in tax collection.

At the behest of the VMC Commissioner, revenue department including one Deputy Commissioner, three assistant commissioners, three zonal commissioners and 13 revenue inspectors along with another 50 members strived for collecting various taxes.

Speaking to The Hans India, VMC Deputy Commissioner (Revenue) Venkata Lakshmi said that they were able to collect around 90 per cent tax collections from taxpayers by collective efforts.

She said they could collect around Rs 40 crore tax collections in March month only. The GO 34, which was introduced to waive off interest on taxes, also helped them in collecting huge amounts, she added.