VIJAYAWADA: In a significant relief measure for taxpayers and a step towards strengthening urban governance, the Government of Andhra Pradesh has unveiled a one-time waiver of 50% on accumulated interest for property tax arrears during the financial year 2025–26.
The scheme, applicable across all Municipalities and Municipal Corporations in AP, is designed to ease the financial burden on citizens while boosting the fiscal capacity of Urban Local Bodies (ULBs).
The waiver will be granted only if taxpayers clear 100% of the principal dues along with the remaining 50% of interest in a single payment within the stipulated period.
The scheme will remain open until March 31, 2026, with the government making it clear that no extension will be granted. While refunds of interest already paid will not be allowed, adjustments against future tax demands may be considered under existing provisions.
Property tax is the most stable and substantial revenue source for ULBs, directly funding essential civic services such as drinking water supply, drainage and sewerage systems, solid waste management, sanitation, urban roads, storm water drains, street lighting, public health facilities, parks, and digital governance platforms.
Timely payment of property tax, officials emphasised, is not just a statutory obligation but a vital contribution to the sustainability and livability of cities. It was noted that several State and Central Government institutions also have significant arrears.
S Suresh Kumar, Principal Secretary (Municipal Administration and Urban Development), has urged these institutions to clear dues promptly, stressing that timely compliance by government entities is crucial for fiscal discipline and uninterrupted service delivery.
The initiative is expected to unlock long-pending revenues, improve municipal finances, and make ULBs eligible for performance-linked grants under the Finance Commission framework. It may also help resolve disputes and court cases related to arrears through voluntary compliance. To ensure accessibility, the government has enabled multiple payment channels. Citizens can pay through Mana Mitra, a WhatsApp-based service, the PuraMitra mobile app, and other online platforms of respective ULBs.
Offline facilities at municipal offices and designated counters will also be available to ensure inclusivity.
Officials have underlined that this waiver is a one-time, time-bound opportunity. After March 31, 2026, strict enforcement under the Andhra Pradesh Municipalities Act, 1965, and the Municipal Corporations Act, 1955, will resume. Defaulters may face full interest charges, penalties, recovery proceedings, property attachment, and restrictions on property-related transactions and municipal services.
Suresh described the scheme as a “reset mechanism for urban financial discipline.” He urged citizens to seize the chance, emphasising that urban transformation is a shared responsibility between government and people. By offering this relief, AP aims to foster responsible tax compliance, strengthen municipal finances, and accelerate investments in critical urban infrastructure, ultimately building more resilient and citizen-responsive cities.