Vijayawada Municipal Corporation faces a severe financial crunch due to mounting tax arrears. According to official estimates, the Corporation is struggling to collect approximately Rs 250 crore in pending taxes from various sources including property owners, vacant lands, and business complexes.

Despite needing to collect over Rs 550 crore annually in taxes, the Corporation is unable to achieve full recovery. This issue regularly features in Council meetings, where officials consistently promise new collection plans without significant results.

Large corporations and government offices, including Central Government organizations like Railways (which owes nearly Rs 60 crore), are among the biggest defaulters. While regular citizens face strict collection measures, these larger entities often escape scrutiny, creating a troubling double standard.

Many property owners have approached courts to challenge tax collection methods, further delaying the recovery process. Business complexes in Indira Gandhi Municipal Stadium and NTR Complex frequently fail to pay rent and taxes on time.

Commissioner Dhyanachandra has initiated discussions with vacant landowners regarding their dues. The Corporation is tracking down property owners living abroad and contacting them by phone. Officials are explaining the future consequences of non-payment while pursuing both government and private defaulters with notices threatening service disconnections.

The Corporation has created a targeted approach, listing the top ten defaulters at each administrative level and warning that water and drainage connections may be severed for continued non-payment. This collection drive has shown some success in the past three months.