Exempt property tax for educational institutions: AIMES

Exempt property tax for educational institutions: AIMES

Omer bin Taher

Hyderabad:28.12.2021

All India Muslim Educational Society (AIMES)-Telangana and Andhra Pradesh on Monday urged the state government to exempt educational institutions from property tax, impact fee and compounding fee for residential buildings used for educational purpose across the state.

A representation submitted by MS Farooq, advocate, general secretary, AIMES-Telangana and AP, to the government stated that the proposed act of the municipal department may cause several educational institutions in the state to shut down.

“We want the state government to withdraw the GO as it is affecting the low-budget private schools that are mostly housed in residential areas. The schools have been asked to submit the applications online by December 31, 2021 along with 50% penalty fee. As per the GO, the state would collect impact fee, compounding fee and property tax with penalty from owners or occupiers of buildings that have been converted into commercial or school buildings from residential buildings,” Farooq said.

He said that due to the pandemic several schools remained shut which resulted in many private unaided schools shutting down permanently as the managements were unable to bear the taxes and rents or collect fee.

“Various state governments have exempted property tax for residential buildings in use for educational purposes as they are sharing the responsibility of the state sector in providing access to education on non-profit basis,” stated the representation “The present GO, if implemented, could be the final nail in the coffin for many unaided schools as the managements may not cooperate in paying penalties proposed to be collected,” Farooq added.

A representation submitted by AIMES-Telangana and AP stated that the proposed act of the municipal department may cause several educational institutions to shut down