VIJAYAWADA: The Municipal Administration and Urban Development (MAUD) department has received a revenue of Rs 866.77 crore as property tax in the current fiscal year till Tuesday as against the proportional target (April 1 to December 22) of Rs 2,210.39 crore.
Although the collection is about 39.2 per cent of the target, it is 21.2 per cent higher when compared to the revenue through property tax in the corresponding period in 2019 even as the State’s finances were affected due to COVID-19.
According to the officials, about Rs 715.17 crore was collected between April 1 and December 22 in 2019. They attributed the increase in the payments to two reasons: early bird discount that was given till July 31 and ward secretariats/volunteer system.
While Visakhapatnam urban local body (GVMC) topped the list of property tax revenue with Rs 206.59 crore as against the proportional target of Rs 691.94 crore, Vijayawada stood second with a collection of Rs 72.23 crore as against the proportional demand of Rs 223.06 crore.
Incidentally, while nine of the top 10 contributing ULBs — Visakhapatnam, Guntur, Tirupati, Nellore, Rajamahendravaram, Kurnool, Kakinada, Anantapur and Kadapa — witnessed a significant increase in the tax collections, Vijayawada Municipal Corporation witnessed a decline of 13.4 per cent in contribution.
Similarly, revenue collections through water charges also saw a significant jump of about 39.1 per cent, even as only 38 per cent of the proportional target of Rs 420 crore has been collected so far. Last year, it was Rs 115.19 crore, while this year it stood at Rs 160.26 crore.
“The revenue through property tax in the current fiscal remained almost the same as the previous two years until May. However, between May and June, we saw a steep increase, which was because of the five per cent tax discount the department has extended for those who pay annual tax at once and in advance. Also, interest was not collected on delayed payments,” a senior official from the department explained.
Other revenue such as trade license revenue, lease revenue collections and other categories has seen a steep fall. While the department collected Rs 661.08 crore between April 1 and December 22 last year, only Rs 419.22 crore has been generated this year, registering a fall of 36.6 per cent.