Vijayawada Municipal Corporation Ramps Up Tax Collection Efforts as Financial Year Closes
With the financial year 2025-26 approaching its conclusion, the Vijayawada Municipal Corporation (VMC) has significantly intensified its tax collection drive, aiming to achieve 100% revenue collection. As part of this aggressive effort, officials have begun suspending drinking water and underground drainage (UGD) connections to households of tax defaulters across the city.
Substantial Tax Dues and Recovery Statistics
According to VMC revenue records, a total of Rs 432.3 crore is pending in tax dues out of Rs 628.75 crore in tax demands. This includes arrears demand, current demand, and interest charges, highlighting the scale of the collection challenge.
Among the various tax categories, property tax has recorded the highest demand and collections. The total demand in this category stands at Rs 233.69 crore, with Rs 136.70 crore collected, leaving a balance of Rs 96.99 crore. The recovery rate for property tax is currently at 58.50%.
In the vacant sites category, the demand is Rs 262.10 crore, but collection has been relatively low at Rs 15.75 crore, resulting in a balance of Rs 246.35 crore. The recovery percentage in this category is a mere 6.01%, indicating significant challenges in this area.
For water cess, the total demand is Rs 69.73 crore. Out of this, Rs 23.07 crore has been collected, while Rs 46.67 crore remains pending, reflecting a 33.08% recovery rate. In the sewerage category, the total demand is Rs 42.92 crore, with Rs 12.99 crore collected, leaving a balance of Rs 29.93 crore and a recovery rate of 30.26%.
Special Drives and Enforcement Actions
VMC chief HM Dhyanachandra stated that the civic body has launched special drives across three circles to recover arrears of property tax, vacant land tax, water tax, and drainage tax. As part of these drives, officials have pasted seizure notices on properties of defaulters in I Town and Bhavanipuram under Circle-1, and in Sitarampuram under Circle-II.
In addition, water and drainage connections have been disconnected in Ajit Singh Nagar under Circle-II for non-payment of dues. These measures are part of a broader strategy to compel compliance and boost revenue collection before the financial year ends.
The intensified efforts underscore the VMC's commitment to improving fiscal health and ensuring that all taxpayers fulfill their obligations. With the deadline looming, officials are focusing on maximizing recoveries to meet their revenue targets.
