Sector, colleges have to pay fees to Gram Panchayats: Pawan Kalyan

Deputy Chief Minister Pawan Kalyan | Photo credit: ARRANGEMENT

Deputy Chief Minister and Minister for Panchayat Raj and Rural Development K. Pawan Kalyan on Monday expressed displeasure over the widespread tax evasion due to Gram Panchayats (GPs) and ordered the formation of an empowered committee to review tax compliance by industries, educational institutions and other establishments.

After reviewing GP tax collections, Mr. Kalyan directed officials to conduct a comprehensive review of tax liabilities and payments to ensure local bodies receive their dues.

He found that several industries, educational institutions and organizations were allegedly undervaluing their buildings and infrastructure to reduce their tax burden and stressed the need to curb such practices.

Asked why industries, colleges and schools are not paying taxes properly when even lower middle class families are fulfilling their tax obligations, Mr. Kalyan said entities that contribute to pollution and generate waste cannot shirk their responsibilities to local bodies.

Referring to Andhra Paper Mills, he alleged that the company was discharging sewage into the Godavari river while evading taxes due to the local bodies.

The Deputy Chief Minister said taxes of nearly ₹160 crore were due to Gram Panchayats, including about ₹115 crore from industries and ₹45 crore from educational institutions. He noted that of the industrial dues, Andhra Paper Mills alone accounted for nearly ₹13 crore.

Mr. Kalyan said proper assessment and collection of taxes could generate nearly ₹ 5,496 crore annually for Gram Panchayats. He called for special efforts to improve collections and assured officials that any political interference would be dealt with vigorously.

He also asked for a detailed report on the Gram Panchayat properties that have been encroached or illegally stolen during the last 30 years, with a view to initiating measures to restore them.

Published – 1 Jun 2026 23:14 IST