Vijayawada civic body nets Rs 252 crore property tax revenue in FY25, ET RealEstate
VIJAYAWADA: The Vijayawada Municipal Corporation (VMC) netted a record Rs 252 crore in tax revenue through property tax, vacant land tax (VLT), water cess, and various other municipal taxes in the 2024–25 financial year. With this, the civic body registered a significant 20% increase in tax collection compared to Rs 209 crore in previous 2023–24 financial year.
Officials attribute the increase in tax collection to the five percent discount provided to households for paying the entire property and VLT taxes in a single transaction, which evoked a good response from taxpayers in the city.
According to VMC officials, the municipal corporation has over 2.2 lakh property tax assessments, along with 15,000 VLT assessments, more than 1.2 lakh water tax assessments, and over 1.1 lakh sewerage assessments across 64 wards under its jurisdiction.
Out of the Rs 252 crore tax revenue collected in 2024–25, the corporation received Rs 189 crore from property tax, Rs 44 crore from water tax, and Rs 19 crore from sewerage tax. In the previous 2023–24 financial year, the corporation collected Rs 160 crore in property tax, Rs 34 crore in water tax, and Rs 15 crore in sewerage tax.
Elaborating further, VMC officials attributed the increase in tax revenue to the 50% waiver on interest dues on pending property and VLT taxes, which encouraged households to clear their accumulated dues, thereby boosting revenue. Additionally, officials noted that the town planning department, with a focused approach, has been working to increase tax collections by expanding the number of assessments and generating new tax demand from recently constructed residential and commercial establishments in the city.
