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GMC to levy property tax under new system

Revised tax structure to come into effect from next fiscal; civic body to collect property tax on capital value

Published: 24th February 2021 08:51 AM  |   Last Updated: 24th February 2021 08:51 AM   |  A+A-

Guntur Municipal Corporation building

Guntur Municipal Corporation building (Photo | EPS)

By Express News Service

GUNTUR: As per the directions of the State government to change the system of levying property tax to strengthen the urban local bodies (ULBs) and provide better services to the people, Guntur Municipal Corporation (GMC) has decided to impose property tax based on the capital value. At present, property tax is being levied on the annual rental value basis (ARV system), where three months rent is levied as tax per annum. The government has revised this method and will levy tax based on the capital value (CV) of the property.

According to GO 198, the percentage of the property tax so fixed, shall not be less than 0.10% and not more than 0.50% of the capital value in the case of residential buildings and shall not be less than 0.20% and not more than 2% of the capital value in the case of non-residential buildings, which shall be effected from the financial year 2021-2022.

The GMC passed a resolution on January 8 and issued a draft notification on February 6 to impose a property tax of 0.15% on the total capital value of the residential buildings, 0.3% on non-residential buildings (commercial complexes) and 0.5% on vacant lands. 

Opposing the proposal of the State government to fix property tax on the basis of property value and not on the basis of rental value as is being done now, MLC K Lakshman Rao said it would be burdensome to the people, who were already reeling under crisis due to the Covid-19 pandemic, if the property taxes were to be collected based on the new system. Guntur city committee convenor Nalini Kanth took objection to the ordinance. He wondered how the government can issue the ordinance when the elected local bodies were not there. 

GMC Commissioner Ch Anuradha said that they have been eliciting opinion from people since the day notification was issued. She appealed to people to submit their suggestions and objections on or before March 5.



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