The Communist Party of India (Marxist) (CPM) State secretariat member Ch. Babu Rao demanded that the Andhra Pradesh government immediately halt the ongoing increase in property taxes in urban areas and scrap the capital value-based taxation system.
Addressing the media, Mr. Babu Rao criticised the introduction of the capital value system for property tax, which replaced the earlier rental value-based system. He pointed out that the system was implemented in 2020 by the then YSRCP government through amendments to the Municipal Act (44/2020) and the issuance of Government Order (G.O.) No. 198, allegedly under the influence of the BJP government at the Centre.
He noted that from financial year 2021–22 onwards, property taxes have been increased annually by 15%, resulting in a substantial burden on citizens. Despite earlier opposition by the Telugu Desam Party (TDP), which had promised to review and reduce taxes during its time in opposition, the current coalition government has continued the same policy, he alleged.
According to Mr. Babu Rao, property taxes have nearly doubled over the past five years, and with demand notices for the 2026–27 financial year expected to be issued shortly, the government appears set to continue the trend of increasing taxes.
He further stated that although the issue was raised during recent Assembly sessions, the government has not responded. He warned that if the current pattern continues, the cumulative tax increase could reach nearly 45% by 2029. Highlighting the financial impact, Mr. Babu Rao said that property tax demand across 123 cities and towns in the State has risen from ₹2,450 crore in 2021 to ₹3,900 crore at present, accusing the government of inflating property values to boost revenue through higher registration charges and taxes.
He also raised concerns over penalties being imposed on homeowners, alleging that penalties ranging from 25% to 100% are being levied annually on the pretext of building plan violations. He criticised the imposition of heavy penalties on poor households lacking formal property titles, calling it unjust.
Mr. Babu Rao pointed out that even provisions meant to benefit the poor, such as a nominal tax of ₹50 per six months for houses below 375 square feet, are not being properly implemented, and instead, such households are burdened with excessive penalties.
Published – April 02, 2026 12:08 am IST
