GUNTUR: The Guntur Municipal Corporation (GMC) has eliminated ₹33.62 crore in ‘uncollectable’ property tax arrears as part of its initial phase, addressing a total of over ₹80 crore in long-standing demands. Property and vacant land taxes are vital for GMC, generating an approximate annual revenue of ₹300 crore. Yet, collection rates have historically remained at 50-60%, primarily due to staff oversight and accumulating uncollectable amounts.
“We conducted a comprehensive review of the outstanding dues and determined that certain assessments could be waived following due diligence. Every record will be made public, as the council has approved this proposal. This initiative will allow the corporation to concentrate on legitimate dues and meet its targets,” stated GMC Commissioner Puli Srinivasulu.
The uncollectable arrears stemmed from various factors, including incorrect tax assessments, outdated records of demolished buildings, duplicate assessments, and properties no longer in existence. Some entries involved redevelopment, such as older houses replaced with apartments without the necessary updates, and certain locked premises no longer occupied. Additionally, discrepancies in assessment numbers were discovered during GMC’s thorough review process.
The GMC commissioner held multiple reviews with officials and assigned senior staff, including deputy commissioners, to inspect the field alongside ward administrative secretaries and revenue staff for verifications to pinpoint anomalies. Following this scrutiny, the decision was made to waive demands totaling ₹33.62 crore across 4,337 assessments, a move recently approved by the corporation council.
While this action aims to enhance record accuracy and improve collection efficiency, concerns were raised regarding the assessment process. Some questioned whether reviews were conducted fairly or if leniency was granted to influential taxpayers. The commissioner expressed that any irregularities found during the review would be addressed firmly.
“This exercise aims solely to refine the records, not to accommodate tax evasion. It is part of a broader initiative to streamline revenue collection and eliminate unrealistic demands that hinder overall recovery rates. We will persist in this effort to scrutinize anomalies in remaining long-term assessments and address uncollectable arrears, potentially providing more relief while ensuring that genuine taxpayers are not unduly burdened,” remarked Srinivasulu.
