Considering the humanitarian ground the Government and GVMC should withdraw this proposal and give some concessions on property tax. ![]() During this time, people are expecting help from the Government by reducing taxes. The expected 3rd wave will further destroy the people. Hospitalisation, deaths, lockdowns, loss of jobs, business closures, reduction in rents, and increase of prices effected people badly. Years 20 were worst hit by COVID 19 and black fungus. The proposal by the Government and GVMC is very ill-timed. The process adopted and methodology adopted are totally against the provisions of the Act.ġ3. We hereby affirm that we are opposing the amendments made by AP Government to the Act.ġ2. Our objections for decrease of percentage doesn’t mean that we are accepting the capital value system. GVMC asked for objections on percentage of taxation only. The state is already announcing that the “increase “ will be 0.15 % to 0.50% making it clear that a decision was already taken and the whole process being followed is just a formality. Levying penalty every year is against natural justice and may also encourage corrupt practices. As it is majority of buildings have deviations from approved plan. Levying penalty is uncalled for since the tax as per capital value itself will be very high. By imposing so much tax the Government is deterring people from buying property which is against human rights.ġ0. 0.50% tax on market value of the vacant land is too high. It is every persons dream to own a house plot for construction of house in future. Hence levying tax on capital value is not a viable idea and against citizens interest.ĩ. Property tax is paid to Municipal Corporation by the Property owner when the property gives use value only. Only when the property is sold, it gives exchange value. As long as the property is used for residential/non-residential purposes either by the owner or the tenant, the property renders use value only. The property tax board was neither formed nor studied the draft notification. As per clause 6(6), the Council should consult the Property Tax Board before publication of the draft notification. This resolution was not approved by the elected counsel. The elected council took charge in March 2021. The resolution No.1976 was passed by bureaucrats. This will result in an annual and abnormal increase especially when the Government is increasing market values by 20% to 50% periodically (mostly annually, except in election years)Ħ. Automatic revision of property tax when the market values are revised is very detrimental to property owners. Different taxation for same size of building amounts to discrimination which is against the law.ĥ. The Registrar office follows a separate valuation for apartments and for individual houses. Perpetual increase of taxes is not a good rule to follow.Ĥ. Apart from this extended transition period, market values will also go up annually. GVMC cannot keep transition period for unlimited number of years. ![]() The suggested transitional period goes on for number of years. Using it as the basis for revision of tax annually or perennially is not correct.ģ. The valuation fixed by the State is not having any legal sanction. Few bureaucrats decide market value without following any scientific method of calculation for the purpose of raising the revenue. ![]() The market value decided by the registration department should not be taken as capital value for fixing property tax. If capital value is followed the taxes would have gone up 50 to 200 times in these 30 years.Ģ. The taxes were also increased 5 times in last 30 years. 30 years back rental of a two bedroom flat was Rs.2000/- and now it is Rs.10000/- i.e. The market value increased 150 times in this case. eg: 30 years back market value in Madhuruwada was 200/- per sq. Market value increased 50 times to 200 times in last 30 years. Introduction of property tax on capital value is against the interest of citizens. We totally oppose this proposal and submit the following objections.ġ. GVMC proposed to introduce capital value for assessment of property tax in place of rental value at rate of 0.15% for residential, 0.30% for non-residential/commercial and 0.50% for vacant plots and 8% Library Cess on tax value. Sub: Property tax- GVMC paper notification No: 1346 Dt: -Objections. ![]() Greater Visakhapatnam Municipal Corporation(GVMC)
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