The Andhra Pradesh Government has rejected the proposal to waive interest on property tax. Principal Secretary of municipal administration department, A. Giridhar, has written to the commissioner and director of MAUD stating, “The proposals for interest waiver on property tax for the current financial year 2014-15 in the municipalities and municipal corporations in the state is not a sound and timely proposal. When the state is undergoing financial stress due to bifurcation and capital construction, the proposal has been rejected.”
 
The state government was responding to the requests made by municipal commissioners for waiver on the lines of Greater Hyderabad Municipal Corporation in Hyderabad so as to launch a driver to encourage payments of property tax arrears.
 
Municipal officials have been advised not to send any suo moto proposals to the government on waiver of interest on property tax. AP government had recently given instructions to all municipalities to ensure 100 per cent tax collection and had also asked to issue legal notices to tax defaulters and confiscate the properties. Municipalities and corporations have identified chronic defaulters and launched a tax collection drive.