Visakhapatnam: The Vizagapatam Chamber of Commerce and Industry (VCCI) urged the Andhra Pradesh Chief Minister YS Jaganmohan Reddy to continue with the rental value system for determination of property tax and defer the decision to increase property tax from April this year.
Addressing a media conference here on Saturday, VCCI president G Veera Mohan and secretary Ravi Godey recalled that on November 24 last year, the government issued a GO Ms No198 on property tax according to which tax would be levied as a certain percentage on the capital value of the property and shall come into force from 1st April 2021. The percentage varied from 0.10% to 0.50% for residential and 0.20% to 2% for commercial properties.
“Everyone who owns a property in the state feels that this is not the right time to increase any taxes. People are struggling with a pandemic that has slashed many people’s income and destroyed lakhs of jobs. Rental values all over the state fell by 20% for residential buildings and 50% for commercial buildings. In fact many commercial establishments closed and owners are not getting any income on these properties,” they stated.
Also, the AP government as well as other State Governments and the Central Government had announced many financial incentives during this pandemic. Some states had reduced Property tax upto 50%. The economy experts were warning that this year the global economy would be much worse and they are expecting a global recession. The pandemic was not yet over and its second and third waves, and variations of the virus were scaring the world, they pointed out.
They also noted that the notification for the public opinion promised by the government in January was not issued keeping the consumers guessing. The VCCI had consulted all sections of stakeholders, had deliberations with resident welfare associations, Tax payers forums, property owners, leading business bodies and general public on the matter and all of them were opposing the Capital Value system for fixation of property tax, they revealed.
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