Revoke G.O. on property tax, VCCI submits representation to CM
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The Vizagapatam Chamber of Commerce and Industry(VCCI) has submitted a representation to the Chief Minister urging him revoke the G.O. on property tax, as it could burden the frequent man.
Addressing a media convention together with members of the Federation of the Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), Resident Welfare Associations, Confederation of Real Estate Developer’s Associations of India (CREDAI) and Tax Payers Forum, right here on Saturday, the VCCI members mentioned that it was not the suitable time to enhance any taxes, as persons are struggling and but to come out of the pandemic scenario.
The State authorities in November, final, had handed an order that property tax, with impact from April 1, will likely be collected on capital worth of the property. The proportion varies from 0.10% to 0.50% for residential and 0.20% to 2% for business properties.
They identified that the rental values everywhere in the State fell by 20% for residential buildings and 50% for business buildings. In reality, many business institutions closed and house owners should not getting any revenue on these properties. They mentioned that many States have slashed the tax charges by 50%, preserving in view the financial scenario.
The members mentioned that majority of the enterprise institutions had been already in deep monetary disaster and unemployment is big.
Though the Minister of Municipal Administration assured that the rise will likely be most to an extent of 20%, persons are not able to pay any further taxes. Any transfer to hike property taxes would come as an added jolt, they mentioned.
The VCCI members mentioned that within the representation they’ve requested the CM to proceed the rental worth system for tax and to contemplate the rise of property tax no more than 10% from April 2022.
“We also request the Chief Minister not to increase the property taxes every year along with market value of the property and to consider the increase every five years,” mentioned VCCI president G. Veeramohan.
He additionally mentioned that within the final 10 years, the State authorities had elevated the market worth of properties within the State by 5 to 10 occasions. “If we had been using the capital value system, then property tax in the last 10 years would have increased by 10 times, which would have been an unbearable burden on property owners,” mentioned Mr. Veeramohan.
Secretary of VCCI Ravi Godey, Dharmender Varada, Secretary CREDAI, and Ms Jeeja Valsaraj from RWA, spoke.
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