The Greater Visakhapatnam Municipal Corporation (GVMC) aims to bring 10,000 unassessed properties into the tax system this financial year, having already identified 4,600 such properties. It also found 877 underassessed properties and collected INR 135 crore through early bird property tax incentives, surpassing last year's INR 118 crore. GVMC's total property tax collection for 2023-24 stands at INR 457 crore, exceeding its target of INR 420 crore. The GVMC focuses on addressing unassessed and underassessed properties to boost revenue and has proposed enforcement teams to remove unauthorised constructions and encroachments while improving vacant land tax collection.
The Greater Visakhapatnam Municipal Corporation (GVMC) has set an ambitious target for the current financial year, aiming to bring 10,000 unassessed properties into the property tax system. Of these, the GVMC has already identified 4,600 properties that were previously unassessed. Additionally, out of 5,000 properties currently under review, 877 have been found to be underassessed. This effort is part of a broader strategy to increase revenue for the civic body.
In terms of revenue collection, the early bird incentive for property taxes has seen a strong response this year, with GVMC collecting approximately INR 135 crore, a notable increase from the INR 118 crore collected in the previous year. Moreover, the GVMC has managed to collect INR 8.4 crore through the vacant property tax, by assessing 886 vacant properties, out of a target of 3,000 vacant spaces.
For the 2023-24 financial year, the GVMC's total property tax collection, including vacant land tax, reached an all-time high of INR 457 crore. This marks a significant achievement, especially in contrast to the decline in revenue collection observed across the state during the last fiscal year. The GVMC not only exceeded its own target of INR 420 crore for the 2024 fiscal year but is also on track to surpass its previous tax collection records. Since 2021-22, the GVMC has switched to levying property tax based on the market value of properties, as opposed to the earlier method of using rental value. This change has resulted in a steady increase in tax revenue each year, and it is expected that this trend will continue.
GVMC Commissioner P Sampath Kumar highlighted that the corporation has made addressing both unassessed and underassessed properties a top priority to increase revenue. He noted that by mid-year, the GVMC had already achieved over 50% of its targets for these properties. Kumar further explained that revenue teams are diligently working to resolve issues, such as updating and correcting property tax records, including name and address discrepancies.
GVMC Deputy Commissioner (Revenue) S Srinivasa Rao explained that unassessed and underassessed properties often include those with additional floors or changes in usage, such as converting residential buildings into commercial spaces. He stated that the corporation is addressing these discrepancies to enhance revenue collection. Rao also highlighted that there is an ongoing effort to improve the collection of vacant land taxes as part of the broader strategy to boost municipal finances.
To further enhance its enforcement capabilities, the GVMC has proposed the establishment of a centralised demolition and enforcement team to remove encroachments on government lands and unauthorised buildings. Additionally, zonal-level teams have been proposed to intervene at the early stages of construction to ensure that buildings adhere to approved plans. Commissioner Sampath Kumar mentioned that buildings involved in legal disputes will be monitored closely on a biweekly basis, ensuring that any necessary actions are taken promptly based on the situation.
This comprehensive approach, targeting both unassessed and underassessed properties, coupled with stricter enforcement measures, demonstrates the GVMC's commitment to improving its financial health and ensuring that property owners comply with tax regulations.
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