GVMC Achieves Record Property Tax Collection of Rs 620 Crore in 2025-26
The Greater Visakhapatnam Municipal Corporation (GVMC) has reported a significant surge in property and vacant land tax collections for the financial year 2025-26, amassing a total of Rs 620 crore. This marks a substantial increase of nearly 22% compared to the Rs 510 crore collected in the previous fiscal year 2024-25. The impressive growth is primarily attributed to strategic initiatives aimed at expanding the tax base and enhancing assessments on vacant lands, which collectively contributed an additional Rs 110 crore over the prior period.
Key Months and Revenue Highlights
April and December 2025 emerged as particularly strong months for tax collections, generating an extra Rs 65 crore compared to the same months in 2024. For instance, collections in April rose from Rs 132.11 crore in 2024 to Rs 163.7 crore in 2025, while December revenues saw a sharp increase from Rs 40.55 crore to Rs 73.12 crore. Throughout the 2025-26 financial year, monthly revenue realization consistently outperformed the previous year, demonstrating sustained momentum in tax recovery efforts.
Government Initiatives and Operational Enhancements
A significant boost came from the Andhra Pradesh government's announcement of a 50% interest waiver for all urban local bodies, implemented about a month before the financial year-end. This policy encouraged many taxpayers to clear their dues by paying the principal amount along with half of the accumulated interest, thereby augmenting GVMC's revenues. To facilitate timely payments, GVMC tax collection offices operated even on Sundays and public holidays throughout March, ensuring citizens could meet deadlines without hassle.
Strategic Measures and Major Contributions
At the outset of the financial year, GVMC focused on adding new assessments and revising tax structures through comprehensive property inspections. These efforts generated nearly Rs 90 crore in additional demand. Notably, two industries made substantial contributions: one had its assessment revised from Rs 2 crore to Rs 20 crore, while another contributed Rs 30 crore. Additionally, two more major revisions were recorded in the Madhurawada area, further bolstering the tax base.
Exceeding Targets and Administrative Efforts
Thanks to the robust collections in April and December, GVMC realized around Rs 410 crore by December itself, nearly Rs 100 crore more than the same period in 2024-25. This early success gave the civic body confidence that it would easily surpass the previous year's collection of Rs 510 crore by at least Rs 100 crore, aiming for the Rs 600 crore mark. Initially, GVMC had set a target of Rs 600 crore, but due to various favourable factors, the collections ultimately reached Rs 620 crore, exceeding expectations.
S Srinivasa Rao, GVMC Deputy Commissioner of Revenue, highlighted that focused efforts began in April, including monthly review meetings. "The early-bird rebate scheme fetched Rs 164 crore in April alone. A steady stream of revenue thereafter helped the corporation reach Rs 620 crore, surpassing initial expectations of Rs 600 crore. Administrative secretaries personally served arrear notices covering both past dues and current arrears, which yielded positive results, with many assessees clearing pending payments throughout the year," said Rao.
Manpower Strengthening and Efficiency Improvements
To enhance operational efficiency, GVMC strengthened its manpower. Previously, only 17 inspectors were handling nearly six lakh assessments, far below the norm of one inspector per 12,000 assessments, which affected mid-level supervision. The number of inspectors has since been increased to 45, each supervising around 15 administrative secretaries. "Reinforcements were also made at the revenue officer level. These measures helped GVMC collect nearly Rs 110 crore more compared to last year," added Rao.
Summary of Key Figures
- There are about 6 lakh tax assessments in Visakhapatnam city.
- GVMC collected Rs 510 crore in property and vacant land tax in 2024-25.
- The target for 2025-26 was initially set at Rs 600 crore.
- GVMC surpassed this target by collecting Rs 620 crore by the end of March.
