VIJAYAWADA: The municipal administration and urban development department saw an increase in property tax collections by 30 per cent in the pandemic-hit year 2020-21. Although the department collected only about 41 per cent of the proportional demand of Rs 3,018.09 crore in the last fiscal year, it is higher than the collections in the last two financial years.
According to information available with the department, the property tax collections in 2019-20 stood at Rs 950.78 crore. In 2018-19, the collections were Rs 1,156.78 crore, officials said. Thanks to early bird rebate, awareness programmes and special drives by the department, relaxation on penalties, and ward volunteer systems, the collections in 2020-21, despite being hit by COVID-19-imposed lockdown, significantly improved and stood at Rs 1,236.48 crore.
Similarly, the water charges collections have also significantly increased compared to 2019-20. The department collected a total of Rs 217.72 crore in 2020-21, 33 per cent of the proportional demand of Rs 654.46 crore. However, it is almost 40 per cent higher than the 2019-20’s water charges collections of Rs 155.74 crore and 2018-19’s Rs 111.35 crore.
The department expects to continue the momentum this year. Although the government has promulgated an ordinance to calculate property tax based on capital value of the property from this year, it said assessment is being done as per the old method, i.e. based on annual rental value, for the time being.
Old method being used for assessment this year
Although the government has promulgated an ordinance to calculate property tax based on capital value of the property from this year, it said assessment is being done as per the old method, i.e. based on annual rental value, for the time being.