AP Dy CM Pawan Kalyan warnsw against Panchayat Tax evassion, orders Statewide Assessment
Mangalagiri, Jun 1 (TNT): Andhra Pradesh Deputy Chief Minister Pawan Kalyan on Monday warned that deliberate tax evasion by industries and educational institutions operating within panchayat limits would not be tolerated and ordered a comprehensive review of tax collections to strengthen the financial self-reliance of gram panchayats.
Chairing a review meeting with Panchayati Raj and Rural Development officials at his camp office here, Pawan Kalyan said institutions benefiting from civic infrastructure and services provided by panchayats must fulfil their responsibility by paying taxes properly.
He observed that tax evasion was weakening the state’s financial resources and affecting the functioning of local bodies.
Questioning how institutions could avoid taxes when ordinary citizens regularly pay local taxes, he directed officials to take a strict view of tax evasion and ensure accountability at all levels.
The Deputy Chief Minister instructed the Panchayati Raj Department to constitute an empowered committee comprising District Panchayat Officers to conduct a detailed study of industries and educational institutions functioning within panchayat jurisdictions.
The committee has been asked to examine the number of institutions, their water consumption, waste generation, facilities utilised and taxes currently being paid, and submit a report within a week.
Pawan Kalyan said several private educational institutions collect substantial fees from students and parents but do not pay taxes commensurate with the services and infrastructure provided by panchayats.
He directed officials to undertake a reassessment of taxes paid by industries and educational institutions, alleging that some entities understate construction values and reduce their tax liabilities.
He also instructed officials to examine whether political influence, subsidies or other factors were contributing to non-payment of taxes by certain institutions.
Expressing concern over outstanding tax dues, the Deputy Chief Minister said industries owe around ₹115.57 crore and educational institutions approximately ₹45 crore, taking the total pending dues to nearly ₹160 crore.
He noted that even a portion of the amount could significantly improve drinking water infrastructure and other basic amenities in rural areas.
According to officials, proper tax collection could potentially generate nearly ₹5,496 crore in revenue for gram panchayats, helping address issues related to sanitation, street lighting and payment of staff salaries.
Pawan Kalyan also ordered immediate action regarding alleged irregularities in tax collection from certain industries and directed officials to take action against panchayat secretaries who failed to recover legitimate dues. He sought a detailed report on major industries with pending tax payments and the reasons for non-recovery.
The Deputy Chief Minister further directed officials to prepare a report on panchayat properties allegedly encroached upon over the last three decades and stressed the need to protect local body assets.
As part of efforts to enhance financial sustainability, he proposed planting 2,000 timber-yielding trees in every panchayat through coordination between the Panchayati Raj and Forest Departments.
He also asked officials to explore additional revenue-generation avenues, including billboards, entertainment taxes and other local sources of income.
The meeting was attended by Principal Secretary Kantilal Dande, Commissioner Krishna Teja, District Panchayat Officers and other senior officials.
TNT KM
