VIJAYAWADA: The state govt on Tuesday announced a one-time waiver of 50% interest on accumulated property tax arrears for the financial year 2025-26 across all municipalities and municipal corporations in the state. The waiver will be available to taxpayers who clear 100% of the principal property tax dues, along with the remaining 50% interest, in a single lump-sum payment on or before March 31.
The govt clarified that the scheme is time-bound and will not be extended beyond the deadline. The officials also clarified that no refund will be given if the interest has already been paid, and the same may be adjusted against future demands under existing provisions.
Property tax remains the primary revenue source for urban local bodies, and timely payments are critical for various public services and improving municipal finances. Taking substantial property tax arrears from several state and central govt institutions into account, the principal secretary, MA&UD, has written to the concerned departments and institutions, urging them to clear their dues to support fiscal discipline and strengthen urban local bodies.
Suresh Kumar stated that the waiver would help unlock long-pending revenues, improve the financial health of municipalities, and enable them to qualify for performance-linked grants, including those recommended by the Finance Commission. It is also expected to facilitate voluntary resolution of disputes and court cases related to tax arrears.
To ensure ease of payment, the govt has enabled multiple digital and physical payment channels. Taxpayers can pay dues through Mana Mitra WhatsApp services, the PuraMitra mobile application, and online platforms of respective urban local bodies, while assisted offline payment facilities will be available at municipal offices.
