Call For Status-Quo Over Property Tax

Kakinada:The authorities have been urged to maintain status-quo over property tax, as huge hikes were effected in the past.

The previous government levied property tax on the capital value of the property. Recently, the state government has enhanced the market values of properties. Therefore, even though it is claimed that the hike in levy was only 12 per cent, property owners say this was abnormal and unbearable. They want the government to reduce the burden.

The Kakinada municipal corporation collected Rs 53 crore in the financial year 2024-25, while the target was of collecting `60 crore this financial year. Social activist and Kakinada Poura Samkshema Sangham convener

Dusarlapudi Ramana Raju said the hike in property tax was abnormal as the state government was implementing a capital value based tax policy as suggested by the central government.

Apart from this, the state government levied a 15 per cent tax every year. The tax policy would adversely affect the property owners in corporations, municipalities and nagar panchayats.

At the same time, the library cess has also been increased. In 2021-22, the property tax was levied at `10,000 including the library cess. But, after the new tax policy came into force, the property tax was increased to `12,000 and the library cess saw an extra levy of `960. In 2023-24, the property tax was increased to `14,000 and the library cess went up to `1120.

In 2024-25, the property tax rose to `16,100 and library cess to `1288. In the 2025-26 fiscal, the property goes up to `18,550 and library cess to `1484.

Now, due to the hike in property value by the Registrar and Stamps department, the property tax may up go to `22,000 and the libracy cess to `1760. “The property tax is hiked by more than `24,000 within a three-year of span. This would be a heavy burden on the property owners, Raju said.

He notes that though crores more are collected, there is no creation of infrastructure facilities. “The alliance parties led by Chandrababu Naidu had promised the people that the property tax would not be hiked, and status quo maintained.”

In Rajamahendravaram too, the property tax has been hiked. East Godavari district Congress committee president TK Visweswara Reddy said the corporation hiked the tax by 15 per cent, which should be reduced.

He said, “The state government is borrowing indiscriminately and it is putting that burden on the people. The people are unable to bear the burden of taxes.”