GVMC sets target of Rs. 450 cr from property tax

Visakhapatnam: Greater Visakhapatnam Municipal Corporation (GVMC), the largest urban civic body in Andhra Pradesh expects to collect Rs 450 crore during 2021-22 as property tax as against Rs.285 crore it received during last fiscal.

Due to the outbreak of Covid-19 epidemic, GVMC had failed to achieve the targeted Rs 384 crore last year. As part of its strategy, the urban civic body is now offering a 5 per centdiscount to early birds who pay the property tax for the entire year by April 30.

Incidentally, the tax is being realised at the old rate even though the government had opted for levying more on residential and commercial properties as part of 'rationalisation of property tax.'

When contacted CPI corporator AJ Stalin and CPI (M) corporator M Ganga Rao told Bizz Buzz that as per indications, the government has plans to revise the tax with retrospective effect based on land value instead of rental amount. They also found fault with the government for not tabling the annual budget before the council on 'technical grounds.'

Officials said as the budget has to be finalised by February 28 and notified much before commencement of the new financial year, the District Collector-cum-Special Officer had to ratify it immediately after receiving it from the GVMC Commissioner. Stalin said the outlay could have been discussed at the council meeting as elections were over on March 10 and the Mayor and the corporators took oath on March 18.

Rs 4,255-crore outlay

In the annual budget, the outlay has been fixed at Rs 4,255 crore with an opening balance of Rs 226 crore- an increase by Rs 84 crore over the previous year. It envisages spending Rs 4,054 crore towards revenue and capital expenditure without increasing existing tax rates.

According to GVMC officials, priority has been accorded to roads with the allotment of Rs 205 crore for maintenance. For laying water supply lines Rs.130 crore has been allocated. The salient features of the budget include Rs 150 crore for sanitation, Rs 82 crore for door-to-door waste collection and a whopping Rs.516 crore for public health. Besides a target to get Rs.450 crore from property tax, GVMC also wants to collect Rs 50 crore from Vacant Land Tax, Rs 237 crore assigned revenue, Rs 275 crore from bulk and semi-bulk water charges, Rs.52 crore town planning, Rs.60 crore from tap connection fees. GVMC also pins high hopes on funding of Rs146 crore from Finance Commission, Rs 288 crore from Externally Aided Projects and Rs 24 crore from Atal Mission for Rejuvenation and Urban Transformation (AMRUT).