VIJAYAWADA: The state government announced on Tuesday a one-time 50% waiver on interest for accumulated property tax arrears for the financial year 2025-26 across all municipalities and municipal corporations. This waiver is accessible to taxpayers who pay 100% of the principal property tax dues, as well as the remaining 50% interest, in a single lump-sum payment by March 31.
The government specified that this offer is time-limited and will not be extended. Additionally, any interest that has already been paid will not be refunded and can only be adjusted against future tax demands as per existing provisions.
Property tax is a crucial revenue source for urban local bodies, and timely payments are vital for maintaining various public services and improving municipal finances. In light of significant property tax arrears from state and central government institutions, the principal secretary of MA&UD has reached out to relevant departments and institutions, urging them to settle their outstanding dues to promote fiscal responsibility and enhance urban local bodies.
Suresh Kumar noted that the waiver is intended to release long-pending revenues, improve municipalities’ financial health, and help them qualify for performance-linked grants, including those from the Finance Commission. It is also expected to promote voluntary settlements of disputes and court cases related to tax arrears.
To facilitate payment, the government has introduced several digital and physical payment options. Taxpayers can pay their dues through WhatsApp services via Mana Mitra, the PuraMitra mobile app, and the online platforms of respective urban local bodies. In-person payment assistance will also be available at municipal offices.
