Revoke GO No.198 and Amendment Act 44/2020: CPM’

Srinivasa Rao, State secretary of the Communist Party of India—Marxist (CPM), has urged Chief Minister N Chandrababu Naidu to revoke G.O.Ms.No.198 and Amendment Act 44/2020, and to immediately suspend the 15-per cent increase in Property Tax for towns and cities effective from April. He reminded Chandrababu of his previous promises that the public is unable to shoulder the additional burden of increased property taxes.
The prior government enacted Ordinance No.16/2020 on November 24, 2020, which modified the property tax assessment framework for towns and cities, as well as amended the Municipal Corporation Acts. This Ordinance was subsequently ratified in the Assembly as Amendment Act 44/2020. The legislation altered the property tax assessment method from rental values to capital values of properties. To facilitate this change, rules were established, leading to the issuance of G.O.Ms.No.198.
In this context, Srinivasa Rao addressed a letter to the Chief Minister on Sunday, asserting that the amendment was designed to impose a lasting financial burden on citizens in order to secure a one-time loan. He noted that this amendment was intended to obtain approval for an additional 0.25 per cent loan from the Central government. At that time, there was widespread public opposition, including from the Telugu Desam Party (TDP), which he recalled.
Moreover, he pointed out that the TDP, while in Opposition, had pledged during the elections to reassess the property tax if they regained power. The public had anticipated a reduction in the property tax burden; however, he expressed disappointment that no such review has occurred to date. He argued that while taxing based on rental value is justifiable, taxing based on capital value is not appropriate. He further emphasised that the capital value is determined by the government, which tends to increase it annually for registration purposes.
He stated that the current administration has recently raised property taxes by tying property tax to market value, any increase in property values by the government will also lead to higher property taxes. He noted that the existing property tax is raised by 15 per cent each year, and if this trend continues, property taxes will have surged by 100 per cent since the law’s implementation.
He further explained that regardless of any changes in construction or the sale of vacant land, taxes are assessed based on the capital value (market value) of the property at that moment, which is becoming increasingly burdensome. He pointed out that additional taxes are being imposed on buildings under the pretext of lacking building permits.
Moreover, he mentioned that authorities are pressuring residents to settle their house taxes as the financial year 2024-25 approaches its conclusion. He said that they are threatening to disconnect fresh water and drainage services if payments are not made promptly, with some connections already removed in certain areas.
He argued that it is unjust to impose penalties before the financial year ends and urged the government to eliminate the 24 per cent penalties, allowing residents to pay their taxes without penalties until the end of May.