In Andhra Pradesh, the situation is such that people are worried about losing their money in the form of taxes whenever they step out of their homes. The YS Jagan led YSRCP government which made its mark by hiking the prices of alcohol based on brands has now even increased taxes. In a span of 18 months the list of taxes hiked by Jagan is a long one – income tax, vehicle tax, new MVA for levying higher fines on traffic rule violation, power tariff hike, revision in property tax, water & sewerage charges, new tolls to be set up and GST hike on fuels. This situation has led the opposition to protest against the government’s tactic of announcing several welfare schemes and freebies while fleecing twice the amount in return additionally in the form of taxes from citizens.
- Already property taxes have been hiked in Municipal and Urban Corporations and now green signal has been given to increase water and sewerage charges. It has been the usual norm for local bodies to increase the taxes yearly by seven percent on water and sewerage, and now additional taxes are being imposed.
- This means residents living in a200 Square Feet house for which property, water, sewerage and electricity charges are applicable, need to make a mandatory payment of up to Rs 50,000.
- Toll charges are applicable only on National Highways, however, the recent inclusions of toll charges on State Highways by the YSRCP government have led to a debate in Andhra Pradesh. Initially, eleven routes have been chosen and later additional routes will be included. The toll is also likely to be imposed on road stretches spanning 30-40 kilometres.
- There has been strong criticism on plans by the government to charge taxes on public toilets. Sewerage connections shave been divided into three types – For a house with two commodes Rs 30-35, for three Rs 60- 80 and for each extra commode an additional Rs 10 will be charged on a monthly basis. On the other hand, for commercial buildings, the charges would be above Rs 150. In the case of schools, places of worship, hospitals and hotels which have ten commodes – Rs 300-600 will be charged. For buildings with more than 10 commodes, an additional Rs 15 per commode would be levied.
- Coming to property tax, the YS Jagan government has broken a 30-yr record as the plans are on to increase taxes based on the property value. For residential houses 0.5%, and for commercial buildings, a maximum of 2.0% of the property value would be levied as taxes. For empty plots, in the Municipality area 0.2% and in Corporation area 0.5% tax would be levied. Along with these, a maximum of 0.25% on waste matter based on the property would be levied. In the case of illegal constructions and buildings without a valid permit, a maximum 100% penalty will be imposed.
- Andhra Pradesh has also joined the list of those states charging high GST on Petrol. Earlier, the GST on fuel was 30%, but after Jagan led YSRCP government assumed power the GST on Petrol was hiked to 35.2% last January. In the case of Diesel, the GST has been hiked to 27% from the earlier 22.25%.
- The Andhra Pradesh government also issued notifications on increasing the Value Added Tax (VAT) on natural gas from 14.5% to 24.5%.
- A 5% tax has been increased on crude oil, while a 1% VAT on Air Turbine Fuel (ATF) has been levied by the AP government.
- Water tax has also been increased by the YS Jagan government. For residential property Rs 100 to 350, for apartments up to 1000 litres capacity Rs 30-50, for commercial properties up to 1000 litres Rs 60 to 140 and for institutions Rs 40 to 80 is being charged for 1000 litres.
- Even Professional Tax slab has been increased from Rs 1250 to Rs 2000. For commercial firms having a turnover limit of Rs 25 lakhs a tax of Rs 2000 and for those above Rs 25 lakhs, a tax of Rs 2500 is being levied. However, those commercial firms within 10 lakh limit have been exempted.
- In the case of those persons working in the film industry, a tax of Rs 2500 has been imposed. For district and state cooperative organizations, video libraries and weighbridge operators are also being levied a tax of Rs 2500. While telephone operators have been exempted from professional tax, Rs 2500 is being levied for taking away food points, curry points and canteens.
