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The Greater Visakhapatnam Municipal Corporation (GVMC) has achieved a record high in tax collections for the financial year 2022-23, surpassing its own target of 375 crore. The GVMC, which is responsible for collecting property taxes in the city, collected a total of 421.5 crore, including vacant land tax receipts. This is a significant improvement compared to the previous fiscal years, when the tax collection was impacted by the Covid-19 pandemic.
The GVMC officials attribute the success to the one-time interest waiver announced by the state government for long-term defaulters or accumulated dues, which was implemented due to the pandemic's disruption. The waiver was requested by various people's representatives and officials, and it worked in favour of the civic body.
The tax revenue flow of the GVMC was severely affected by the pandemic in the 2019 and 2020 fiscal years, with only 224 crore and 274 crore collected, respectively. However, the GVMC managed to improve its revenue to some extent in 2022, with 324 crore collected. But, the real success was seen in the 2023 fiscal year when the GVMC achieved its highest-ever tax revenue.
GVMC mayor G Hari Venkata Kumari attributes this success to the tax waiver declared by the state government, which allowed people to pay their taxes and dues on time. The mayor further emphasized that paying taxes is crucial for the city's development, and it makes people an integral part of the city's growth.
GVMC commissioner P Raja Babu credited the constant efforts of the revenue wing for achieving this milestone. The GVMC had set a target of 375 crore for tax collections for the 2023-24 fiscal year, but the revenue wing's efforts yielded better results, with collections crossing the 420 crore mark for the first time in GVMC's history.
It is worth noting that the GVMC has been levying property taxes based on the market price of the property since the 2021-22 fiscal year, instead of the earlier method of calculating tax based on the rental value of the property. This means that whenever the property prices are revised by the government, the property taxes will correspondingly increase. However, the annual hike in property tax has been capped at a maximum of 15%.
The GVMC's success in tax collections is a positive sign for the city's development, as it indicates that people are willing to contribute to their city's growth. The GVMC can utilize the increased revenue to improve the city's infrastructure, provide better services to the people, and enhance the quality of life in the city.
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