Archive · 18 Sep 2026
CPM Alleges Rs 1,000 Crore Urban Property Tax Burden
The CPM says people living in cities are being asked to pay much more in property taxes.
It estimates the extra cost at about Rs 1,000 crore.
CPM leader Ch Babu Rao said taxes had risen every year and increased again this year.
He also said some people face penalties for building violations or late payments.
The CPM believes these costs could affect both homeowners and tenants.
It warned that garbage charges might return after municipal elections.
The party also objected to plans involving private companies in some city services.
These statements were made by the CPM, and the article does not include a response from the government.
CPM leader Ch Babu Rao alleged that higher property taxes have placed an additional burden of around Rs 1,000 crore on urban residents.
He claimed property taxes rose at least 15% annually, with the cumulative increase reaching 131% over six years.
Rao alleged the government increased property taxes by another 30% this year and imposed penalties for building violations and delayed payments.
He said garbage user charges could be reintroduced after municipal elections and that civic services might be privatised.
The CPM demanded repeal of the capital value-based tax system, related amendments, GO 198 and GO 673.
- Who
- CPM State secretariat member Ch Babu Rao, along with Boyi Satya Babu, made the allegations.
- What
- The CPM alleged that increased property taxes, penalties and proposed municipal user charges are imposing a major burden on urban residents.
- When
- The allegations were made at a press conference on Thursday; Rao referred to increases over the past six years and an additional increase this year.
- Where
- At the CPM office in Vijayawada; the claims also referred to proposed road projects in Vijayawada and Visakhapatnam.
- Why
- The CPM attributed the burden to the capital value-based property tax system, higher tax rates, penalties and proposed cost recovery for municipal services.
- Alleged additional burden
- Around Rs 1,000 crore on urban residents
- Cumulative tax increase
- 131% over the past six years, according to the CPM
- Annual increase claimed
- At least 15% annually
- Increase this year
- Another 30%, according to Ch Babu Rao
- Building violation penalties
- Allegedly between 25% and 100%
- Delayed payment penalty
- 24%, according to the CPM leader
- Proposed road projects
- Internal roads in Vijayawada and Visakhapatnam under the PPP model