Defer property tax hike by a 12 months, VCCI urges CM
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The Vizagapatam Chamber of Commerce and Industry (VCCI) has appealed to Chief Minister Y.S. Jagan Mohan Reddy to defer the choice to extend the property tax by one 12 months in view of the tough occasions because of the pandemic scenario.
The VCCI convened a assembly with AP Chambers, FAPCCI, CREDAI, RSW, Film Distributors Association, Builder Association and different associations associated to the problem, right here on Wednesday.
The VCCI has obtained many representations from members, commerce our bodies and residential associations, concerning the impression of the G.O. to alter the system of levying property tax from annual rental worth foundation to capital worth system from the monetary 12 months 2021-2022.
As per the brand new G.O., the property tax shall be levied on a sure share on the capital worth of lands or buildings or each however not lower than 0.10% and less than 0.50% of the capital worth in case of residential buildings and shall not be lower than 0.20% and less than 2.00% of the capital worth in case of non-residential buildings. It shall be efficient from the monetary 12 months 2021-2022.
‘Rental values dipped’
As per this G.O., a 1000 sft. flat will be taxed between ₹5,000 and ₹25,000 and a industrial property will be taxed from ₹12,000 to ₹1,20,000. Citizens are fearful in regards to the variation in share as they really feel that they are going to fall beneath the upper slab and the rise will likely be round 10 occasions.
Due to COVID-19, the rental values everywhere in the State fell by 20%, for residential buildings and 50% for industrial buildings. In reality, many industrial institutions had been closed and there was no earnings on these properties. The constructing house owners expect a aid from the State authorities because it was finished by the Telangana authorities. Increase of taxes from April 2021, can be a enormous burden in these tough occasions.
The State authorities has introduced its motion plan and introduced that the preparatory work would begin from December 10.
VCCI president G. Veeramohan and honorary secretary Ravi Godey addressed the affiliation assembly.
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