Expressing dissatisfaction over the large-scale evasion of taxes payable to Gram Panchayats (GPs), Deputy Chief Minister and Minister for Panchayat Raj and Rural Development K. Pawan Kalyan on Monday ordered the constitution of an empowered committee to assess tax compliance by industries, educational institutions and other establishments.

Reviewing GP tax collections, Mr. Kalyan directed officials to undertake a comprehensive reassessment of tax liabilities and payments to ensure that local bodies receive their rightful dues.

He observed that several industries, educational institutions and organisations were allegedly undervaluing their buildings and infrastructure to reduce their tax burden, and stressed the need to curb such practices.

Questioning why industries, colleges and schools were not paying taxes properly when even lower-middle-class families were meeting their tax obligations, Mr. Kalyan said entities that contribute to pollution and generate waste cannot shirk their responsibility towards local bodies.

Referring to Andhra Paper Mills, he alleged that the company was discharging effluents into the Godavari river while at the same time evading taxes payable to local bodies.

The Deputy Chief Minister said taxes amounting to nearly ₹160 crore were due to Gram Panchayats, including about ₹115 crore from industries and ₹45 crore from educational institutions. Of the industrial dues, Andhra Paper Mills alone accounted for nearly ₹13 crore, he noted.

Mr. Kalyan said proper assessment and collection of taxes could generate nearly ₹5,496 crore annually for Gram Panchayats. He called for a special drive to improve collections and assured officials that any political interference would be dealt with firmly.

He also sought a detailed report on Gram Panchayat properties that had been encroached upon or illegally alienated during the past 30 years, with a view to initiating measures for their recovery.