Communist Party of India (Marxist) (CPM) State Secretariat Member Ch. Babu Rao demanded that the Andhra Pradesh government immediately stop the ongoing increase in property taxes in urban areas and abolish the capital value based taxation system.
Addressing the media, Mr. Babu Rao criticized the introduction of capital value system for property tax, which replaced the earlier system based on rental value. He pointed out that the scheme was introduced in 2020 by the then YSRCP government through an amendment to the Municipal Act (44/2020) and the issuance of Cabinet Order (NV) No. 198, allegedly under the influence of the BJP government at the Centre.
He noted that from the financial year 2021-22, property taxes are being increased by 15% every year, resulting in a significant burden on citizens. Despite earlier opposition from the Telugu Desam Party (TDP), which had promised to revise and reduce taxes during its time in opposition, the current coalition government is continuing the same policy, he said.
According to Mr. Babu Rao, property taxes have almost doubled in the last five years and with demand notifications for the financial year 2026-27 expected to be released soon, the government seems set to continue the trend of tax hikes.
He further said that though the issue was raised in the recent assembly sessions, the government did not respond. He warned that if the current model continues, cumulative tax increases could reach nearly 45% by 2029. Highlighting the financial impact, Mr. Babu Rao said that the demand for property tax in 123 cities and towns in the state has increased from ₹2,450 crore in 2021 to ₹3,900 crore, which translates into an increase in revenue from current state registrations to higher revenue. fees and taxes.
He also expressed concern over the penalties imposed on homeowners, claiming fines ranging from 25% to 100% are being imposed every year on the pretext of building plan violations. He criticized the imposition of high penalties on poor households lacking formal property titles, calling them unfair.
Mr. Babu Rao pointed out that even pro-poor measures such as a nominal tax of ₹50 per six months for houses smaller than 375 sq ft are not properly implemented and instead such households are burdened with excessive penalties.
Published – 02 Apr 2026 0:08 IST
