VIJAYAWADA: The third quarter of the financial year 2017-18 is nearing completion and Vijayawada Municipal Corporation (VMC) is still lagging behind in collecting property tax from residents. The civic body has managed to collect a meagre 32.5 per cent of the targeted property tax till date. According to data available with VMC revenue officials, for the financial year 2017-18, VMC had set a target of collecting `179.70 crore property tax from 1.88 lakh assessments in the city. As of November 17, it has collected `58.40 crore and is yet to collect `121.3 crore by March 31, 2018. In 2016-17, the civic body had set a target of `169 crore and collected 57.99 per cent in the corresponding period.
At present, VMC collects 22 per cent property tax from residents by classifying the city into 13 zones comprising both residential and commercial properties. The property tax slabs are designed by the civic body depending on the zone and different parameters like slum areas, nature of construction, residential and commercial structures.
Moreover, property tax differs from one zone to another. When contacted, Taxpayers Association general secretary M V Anjaneyulu alleged that VMC has failed to earn revenue through property tax.
Earlier, residents paid taxes twice a year, but after mandating single time payment of tax, it has become a major drawback for the corporation to earn revenue through taxes. However, the revenue may slightly increase by February as the financial year comes to a close, he said.A few days ago, the revenue wing of the corporation compiled the list of non-payers in the city.
A majority of the tax evaders in the city are Central Government departments. All India Radio (AIR) and Railways also have to clear property tax dues. The dues of railways alone are to a tune of more than `10 crore till date.
It has not been paying property tax to VMC for more than 14 years now, he added.
“As many as 22 State government offices like APSRTC, Irrigation and others owe more than `16 crore to VMC. Several times, notices have been served to tax evaders in the city. A few of them paid their dues to VMC but most failed to do so. A drive will be initiated shortly to identify the tax evaders and stern action will be initiated against them,’’ said a VMC senior revenue official who did not wish to be named.