AP govt waives of penalty on property taxes

VIJAYAWADA: In a big relief, the State government has waived of penalty on payment of property tax in Urban Local Bodies (ULBs). The taxpayers should avail the benefit by clearing the dues for 2023-24 before March 31. As per the existing provisions of the AP Municipalities Act, 1965 and the Municipal Corporation Act, 1955, property tax demand will be generated for two half years (I-half Year –April 1 to Sep 30 and II-half year from Oct, 1 to March 31) on April, 1 itself every year. Similarly, municipalities have been imposing a simple interest at the rate of two percent (2 %) per month in case of failure to pay property tax by the end of the month of June for the first half year and by the end of December for the second half year. Commissioner and Director of Municipal Administration (CDMA) Srikesh Lathkar Balaji in a report sent to the state government said that they have received requests from various individuals, offices and associations like Credai for waiving the interest on late payment of property tax in this year also as many could not utilise the benefit during the last fiscal as it was granted in the last fortnight of the fiscal. In a GO issued on Thursday, special chief secretary (municipal administration) Y Srilakshmi said that several municipal commissioners have also requested on waiver off interest on late payment of property tax. She said that CDMA reported that due to pandemic situation and enhancement of property tax due to revision of guideline values of Lands & Buildings, a huge amount of property tax arrears is accumulated and pending in all ULBs in the State. She said that CDMA has finally reported that waiving of the interest on late payment of property tax may enable the ULBs to improve the efficiency of property tax collection and thereby may result in achieving mandatory reform under 15^th Finance Commission-to show consistent improvement in collection of property tax. Relief to taxpayers