Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The decision by the state government to grant interest waiver on property tax dues in urban areas has resulted in significant revenue for civic bodies during the last few days of the fiscal year. Urban local bodies collected nearly 40% additional revenue during the current fiscal year compared to last year's tax collections. The tax revenues saw a sudden jump in the last fortnight of March after the state government waived penal interest on accumulated tax dues since 2020-21.
During the current financial year, urban civic bodies collected nearly ?1,900 crore in property taxes, which is more than the ?1,362 crore collected in the last financial year. The state government set a target of ?3,763 crore for 2022-23, but tax collections improved only after the government decided to grant interest waiver on accumulated tax dues for the past three years.
The low property tax collections in 2020-21 and 2021-22 were due to the financial constraints faced by people during the COVID-19 crisis. Many traders could not open their shops for most of the two years, resulting in a decrease in revenue. The situation was brought to the attention of the Chief Minister, YS Jagan Mohan Reddy, who decided to waive penal interest on accumulated tax dues. This decision encouraged people to pay their taxes and reduced the financial burden.
The interest waiver has multiple benefits, as it will streamline tax collections and cleanse the books. Urban civic bodies will now focus on systematic and disciplined tax collection from the next financial year. People are advised to make the best use of the one-time benefit of interest waiver before the closure of the financial year.
The improvement in overall tax collection will help urban civic bodies plan more development works in the next fiscal. The interest waiver has provided relief to the taxpayers and has resulted in increased revenue for the civic bodies. The decision of the state government to waive penal interest on accumulated tax dues has proven to be a beneficial move for both taxpayers and urban local bodies.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
