The Vijayawada Municipal Corporation (VMC) achieved a remarkable tax revenue of Rs 252 crore in the 2024–25 financial year, encompassing property tax, vacant land tax (VLT), water cess, and various other municipal taxes. This figure represents a notable 20% increase from the Rs 209 crore collected in the previous financial year of 2023–24.
Officials credit the rise in tax revenue to a five percent discount offered to households that settle their property and VLT taxes in a single payment, which received a favorable reaction from taxpayers in the city.
According to VMC officials, the municipal corporation oversees more than 220,000 property tax assessments, approximately 15,000 VLT assessments, over 120,000 water tax assessments, and more than 110,000 sewerage assessments across 64 wards within its jurisdiction. Of the Rs 252 crore in tax revenue collected for the fiscal year 2024–25, the corporation garnered Rs 189 crore from property tax, Rs 44 crore from water tax, and Rs 19 crore from sewerage tax.
In comparison, during the previous financial year 2023–24, the corporation collected Rs 160 crore in property tax, Rs 34 crore in water tax, and Rs 15 crore in sewerage tax. Furthermore, VMC officials highlighted that the increase in tax revenue can also be attributed to a 50% waiver on interest charges for outstanding property and VLT taxes, which motivated households to settle their overdue payments, thus enhancing revenue.
Additionally, officials mentioned that the town planning department has been actively working to boost tax collections by increasing the number of assessments and generating new tax demands from newly constructed residential and commercial properties in the city.
