March 4, 2024: In a move that will provide relief to property owners, the Andhra Pradesh government issued orders, on February 2029, for the waiver of interest on property tax arrears up to the financial year 2023-24, according to media reports. The one-time measure is applicable in all Urban Local Bodies (ULBs). The taxpayers can avail of this benefit by paying all their dues for 2023-24 before March 31, 2024.
According to the order, simple interest at the rate of 2% per month will be charged in case of failure to pay property tax by the end of June for the first half year and by the end of December for the second half-year. According to the existing provisions of the AP Municipalities Act, 1965, and the Municipal Corporation Act, 1955, property tax demand will be generated for two half years (the first half-year – April 1 to September 30 and the second half-year from October 1 to March 31) on April 1 itself every year.
As cited in a TOI report, Commissioner and Director of Municipal Administration (CDMA) Srikesh lathkar Balaji in a report sent to the state government said they had received requests from various individuals, offices and associations such as Credai for waiving the interest on late payment of property tax this year also as many could not avail of the benefit during the last fiscal as it was granted in the last fortnight of the fiscal.
According to the GO issued by the special chief secretary to the government, Y Srilakshmi, several municipal commissioners have also requested on waiver of interest on late payment of property tax. She mentioned that CDMA reported that due to the pandemic situation and enhancement of property tax due to revision of guideline values of Lands & Buildings, a huge amount of property tax arrears was accumulated and pending in all ULBs in the state. She added that the CDMA has reported that waiving of interest on late payment of property tax may enable the ULBs to improve the efficiency of property tax collection and thus result in achieving mandatory reform under the 15th Finance Commission-to show consistent improvement in the collection of property tax, as mentioned in the TOI report.
See also: Property tax in AP: How to pay house tax in Andhra Pradesh online?
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