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Ahmedabad: AMC sees 9.82% rise in property tax revenue despite west zone decline

#Taxation & Finance News#India#Gujarat#Ahmedabad
Last Updated : 28th Jan, 2025
Synopsis

The Ahmedabad Municipal Corporation (AMC) reported a 9.82% increase in property tax revenue, rising from INR 1,175.04 crore in 2023-24 to INR 1,290.47 crore in 2024-25. The central zone saw the highest growth at 29.96%, while the northwest zone followed with a 20.61% rise. However, the west zone experienced a 5.95% decline due to reassessment delays, with collections dropping to INR 280.39 crore. AMC aims to complete tax bill distribution by January-end, expecting revenue to rise in February and March. Efforts to streamline reassessment and billing processes are crucial for sustaining revenue growth.

The Ahmedabad Municipal Corporation’s (AMC) property tax department is reassessing properties in the city’s western zone, which has affected the property tax revenue in the area. Revenue in the west zone declined by 5.95% in 2024-25 compared to 2023-24.


Delays in distributing property tax bills, resulting from the reassessment process conducted during 2023-24, contributed to the decline. However, AMC anticipates completing the distribution by the end of January, with revenues expected to rise during February and March.

In a revenue committee meeting held earlier this week, AMC released property tax data highlighting a 9.82% overall increase in revenue, with figures rising from INR 1,175.04 crore in 2023-24 to INR 1,290.47 crore in 2024-25. The central zone saw the largest revenue increase, climbing 29.96% from INR 132.97 crore in 2023-24 to INR 172.81 crore in 2024-25. The northwest zone followed with a 20.61% rise, reaching INR 282.12 crore in 2024-25 from INR 233.92 crore in 2023-24.

Conversely, the west zone recorded the most significant revenue decline, with collections dropping from INR 298.13 crore in 2023-24 to INR 280.39 crore in 2024-25. An AMC official indicated that the total property tax revenue in 2023-24 stood at INR 1,679.98 crore, with the west zone contributing INR 371.49 crore. The delayed distribution of bills in the west zone has been a key factor in the decline, but all pending bills are expected to be issued by early February, potentially boosting revenue in the coming months.

Despite an overall 9.82% increase in property tax revenue for Ahmedabad in 2024-25, disparities among city zones highlight the challenges faced by the AMC. Effective measures to streamline reassessment processes and timely bill distributions could further enhance the city's financial outcomes in future.

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