Waiver of 50% Interest Helps Improve Property Tax Collections in AP
Tax defaulters rush to clear dues before the March 31 deadline, providing a major boost to cash-strapped municipal bodies.
Vijayawada: With the Andhra Pradesh government announcing a waiver of 50 per cent interest on property tax for those who clear their dues by March 31, the tax collections have majorly increased across the state. This is giving a big relief to the cash-strapped municipal bodies.
The state government issued GO 46 on March 25 to waive 50 per cent interest on property tax subject to clearance of all dues by March 31. Tax defaulters caught on it and are paying their dues with no further loss of time.
Instantly, on March 26, the collection was of Rs 28.50crore, which rose to Rs 36.61crore the next day. Previously, on March 21, it was Rs 11.29cr, March 22-Rs 11.29cr, March 23 Rs 5.37cr, March 24 Rs 12.14cr and March 25 Rs 11.44cr, officials said.
The municipal authorities have carried out a massive awareness drive on waiver of 50 per cent interest on property tax, advising tax payers to avail the benefit as it could lessen their tax burden. The municipal commissioners carried out a tom-tom on this through the public address system. Huge hoardings were set up at several places across the state to draw the attention of taxpayers and the tax defaulters.
Meanwhile, the municipal authorities collected taxes from central government, state government, private properties, vacant lands of the order of Rs 1,795.40cr against the demand of Rs 4,475.67cr so far by registering 40.11 per cent collections. They are yet to collect the balance Rs 2,680.27 crore.
However, if the interest including arrears and current dues that come up to Rs 151.35 crore is added to the collection of Rs 1,795.40 crore, the total tax collected with interest would be of Rs 1,946.75 crore so far.
The incentive would continue for three more days.
