Andhra Pradesh: Taxpayers challenge capital value-based property tax

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The Taxpayers Association filed a writ petition in the Andhra Pradesh High Court challenging the imposition of property tax basing on the value of the property instead of the previous practice of based on the rental value

Vijayawada: The Taxpayers Association filed a writ petition in the Andhra Pradesh High Court challenging the imposition of property tax basing on the value of the property instead of the previous practice of based on the rental value.

AP State Bar Council member and senior advocate Sunkara Rajendra Prasad and advocate Narra Srinivas filed the petition on August 14 following the decision of the united forum of the Andhra Pradesh Urban Citizens Federation.

Addressing the media here on Thursday, advocate Rajendra Prasad and APUCF convener Ch Babu Rao, Taxpayers Association president and secretary V Sambi Reddy and M V Anjaneyulu and treasurer Ramaraju pointed out that the amendments to the municipal laws was unconstitutional as the committee of the officials had no power to recommend policy changes in the financial issues of the municipalities and only the State Finance Commission is empower to do so. It was also pointed out that the value of the property would be realised when it was sold and once the property is sold the owner loses the property. How could the government impose tax on the property which would be lost once it was sold which is against the tax laws, they asked.

The petitioners also pointed out that during the pandemic, the aggrieved people could not personally visit the municipal corporation office to file the objections and they were given enough time to file the objections. The writ petition said that out of 2.17 lakh property assessments and 13,229 vacant land assessments only 3,085 could register their objections. They were also denied permission to file the objections online which is against the principles of natural justice and undemocratic.

Moreover, the officials did not place the objections before the special council meeting of the municipal corporation which is nothing but misleading the council. The amendments to the municipal laws did not provide incentives to the senior citizens, physically-handicapped and the low income group people. As per the amendment, the present tax could be doubled which is grossly unjust. The tax was prescribed at the rate of 0.13 per cent on the residential buildings and 0.5 per cent on vacant lands which is also unjust, they said.

In view of the unconstitutionality of the amendments, they should be suspended, it was demanded.

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