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Earlier this week, the Vijayawada Municipal Corporation reported tax collections of INR 252 crore for the 2024-25 fiscal year, a 20% increase from the prior year's total. Key drivers of this rise included a 5% discount for upfront payments and a 50% waiver on interest for pending property and vacant land taxes. Backed by digital adoption, new assessments, and intensified compliance efforts, the civic body also expanded its revenue from water and sewerage taxes, highlighting the effectiveness of a multi-pronged collection strategy.
The Vijayawada Municipal Corporation (VMC) has recorded a strong performance in property tax collections, having garnered INR 252 crore in total revenue during the 2024-25 financial year. This marks a significant 20% rise from the INR 209 crore collected in the previous fiscal, driven by strategic measures, targeted incentives, and consistent efforts by civic authorities to boost compliance. Advertisement
A major factor behind this increase was the 5% rebate offered to households that paid their entire property and vacant land taxes in a single installment. This incentive, rolled out at the start of the financial year, saw widespread participation and helped generate early inflows for the municipal body. Officials said the scheme received an overwhelming response, especially from residential taxpayers.
The revenue figures include INR 189 crore collected from property tax, INR 44 crore from water tax, and INR 19 crore from sewerage tax. These collections surpassed last year's revenue of INR 160 crore, INR 34 crore, and INR 15 crore, respectively, under the same heads. The property tax segment remains the biggest contributor to the city's finances.
Currently, the VMC maintains over 2.2 lakh property tax assessments, about 15,000 vacant land tax assessments, more than 1.2 lakh water tax accounts, and over 1.1 lakh sewerage tax connections. Spread across 64 municipal wards, the civic body has steadily expanded its assessment base through new registrations and field verifications.
In a parallel move, the VMC also launched a 50% waiver on interest dues for households with pending property and vacant land taxes. This scheme, which was in effect until the end of the financial year, led to a significant number of defaulters clearing their arrears, further boosting revenues. Officials reported that several long-pending accounts were settled due to this temporary relief, contributing meaningfully to the overall collection.
Additionally, the town planning department stepped up efforts to bring newly constructed buildings, both residential and commercial, into the tax net. Officials proactively surveyed new developments and ensured they were assessed promptly, creating fresh demand and widening the municipal tax base.
Over the past few years, VMC has taken a tech-enabled approach to tax administration, implementing digital payments, automated alerts for defaulters, and regular awareness campaigns through local channels. These steps have helped streamline processes, improve taxpayer participation, and reduce leakage.
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