AP Urban Property Tax: The property tax burden in Andhra Pradesh cities has increased again. The Urban Citizens Federation claims that property tax has doubled in the last five years. They say that the value-based tax system is putting more financial pressure on citizens.
The government has increased taxes quietly for the 2025-26 financial year. Compared to the previous year, property tax has risen by 15% and compared to 2020-21, it has increased by 30%. The Federation’s convener, Baburao, pointed out that the tax hike has placed a heavy burden on homeowners. The previous government had introduced the value-based tax system instead of the rental value-based system, causing further hardship.
Despite public opposition, the government amended the law and issued GO 198 directing a 15% tax hike annually.Property taxes have been increasing every year from 2021-22. Citizen groups have staged protests but the past government ignored them.
During the last elections, the TDP-Jana Sena-BJP alliance promised to review the tax system and halt property tax hikes. But in 2024-25, the tax increase continued. Public representatives claimed that they could not reduce the tax for 2024 as the hike had already taken effect in April. People hoped there would be no increase this year but the government quietly implemented it for 2025-26.
The government has raised property tax online without informing citizens. The coalition’s failure to fulfill its promise has been labeled a betrayal. The Chief Minister had assured people that the government would not impose financial burdens, yet it has imposed a ₹320 crore tax increase.
Compared to 2020-21, property tax has now doubled. Earlier tax increases occurred once in five years but now they happen annually. The government continuously raises land values for stamp duty and registrationand this led to constant tax hikes. This impacts not only homeowners but also tenants through higher rents.
New homeowners and those building additional rooms are also taxed based on full property value. In some cities, tax rates have risen between 100% and 500%, particularly where unauthorized constructions were later regularized.
The government imposes a 24% penalty for late payments but offers a 5% discount if paid on time. The Urban Citizens Federation calls this deceptive since the tax itself has already been increased by 30%.
Citizens demand immediate action from the Chief Minister to roll back the increased tax. They urge the government to repeal the value-based tax system (Law 44/2020 and GO 198) and review past tax hikes in many towns.
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