Vijayawada: Stiff opposition to property tax hike

Vijayawada: Tax Payers Association here demanded that the government withdraw the proposal to impose property tax basing on the capital value of the property.

The association leaders felt that levying property tax on capital value instead of rental value will result in heavy burden on the house owners. The capital value of property and property tax are unrelated. It demanded for the repeal of amendments made to Andhra Pradesh Municipal Corporations Act, 1955 in respect of property tax as the tax burden will increase on tax payers with the change of rules.

The association submitted a representation to Municipal commissioner Prasanna Venkatesh on Wednesday in response to the objections/suggestions invited by the VMC commissioner from the people on proposed property taxes to be collected by the VMC. The VMC had issued notification on June 5 on levying property tax stating that 0.15 percent property tax to be levied on the residential buildings and on 0.30 percent on the non-residential buildings basing on capital values of both building and land, in which the building is constructed, as decided by Registration and Stamps department.

The Tax Payers Association president MV Sambireddy and the secretary Anjaneyulu said capital value of the property is known to the property owner when the property is sold. As long as the property is used for residential purpose either by owner or tenant the property renders use value only. When property is sold only, it gives exchange value.

The association leaders also alleged that either of the VMC office,the CDMA, the Municipal Administration and Urban Development has ever called for objections/suggestions/advices from property owners or urbanites while proposing amendments to the Andhra Pradesh Municipal Corporation Act, 1955 changing the method of property tax calculation from the existing calculation on annual rental value to the new method of calculation on capital value of both building and land.

They also demanded that the government withdraw GO Nos 196 and 197 and newly inserted sections 491-A and stop the method of taking policy decisions pertaining to local bodies in the absence of elected representatives in the local bodies. The association demanded the VMC to put off the entire process relating to the property tax mentioned in the said draft notification until their demands and objections are resolved.