Anger builds over AP\'s new property tax

VIJAYAWADA: People already facing severe financial difficulties due to the Corona crisis are much worried about the property tax hike under the new system. They fear it would impose a big financial burden on them.

Earlier, property tax was levied based on the annual rental value (ARV), but now the government proposed a new tax system based on the capital value of the property. A majority of people have been facing difficulties due to absence of work, loss of jobs, shattered businesses and illnesses due to the Corona crisis for the past 14 months. They want the government to cancel the tax hike and instead announce property tax waiver, considering Corona hardships.

Opposition parties claim the new property tax would cause more distress to the people already groaning under the pandemic-induced burdens. Left parties and Telugu Desam launched protests against the property tax hike and, interestingly, BJP also raised its voice against the government despite the fact that the tax reforms are being suggested by the saffron party-led Union government. The opposition parties claim the property tax hike would trouble 1.5 crore people by putting Rs 10,000 crore extra financial burdens in all the 13 districts of AP.

The taxpayers deplore that the benefit of increase in property value would be available to the owner when he sells his property and, hence, the capital value-based tax is not justifiable.

Tax Payers Association secretary M.V. Anjaneyulu said the capital value of a property is realised to the property owner when the property is sold.  He explained that as long as the property is used for residential purposes either by owner occupation or tenant occupation, the property renders use value only. He said only when a property is sold that it gives exchange value so the property tax in the new form is unacceptable.

A retired employee, D. Subba Rao, said he purchased a house 20 years ago and he is paying property on the ARV. He said that the tenants would pay rent according to amenities and not on the basis of property and this would help the owners. He stated that tenants would not accept rent hikes on the basis of property value and sought the government to continue the ARV-based tax system.

The Andhra Pradesh Urban Citizens Forum (APUCF) demanded a complete waiver of property tax due to the financial crisis in the prevailing Corona conditions.

APUCF state convener Ch. Babu Rao stated that the neighbouring Telangana state waived the tax to the house taxpayers whose tax was below Rs 15,000 due to the Corona crisis. He said the government was claiming that tax would not increase beyond 15 per cent but actually the tax would cross 100 per cent in five years due to 15 per cent rise every year. He demanded the continuation of the ARV tax system and waiver of property tax for one year due to the Corona crisis. He warned that the APUCF would intensify agitations by conducting dharnas in front of municipal offices all over the state on June 29 and 30, if the government failed to cancel the CV-based property tax system.