KTR hints at property tax hike

‘There has not been any property tax revision for the last 15 years’

Minister for Municipal Administration and Urban Development K.T.Rama Rao hinted at likely increase in property tax rates, during his reply for clarifications on the debate over demands for grants in the Telangana Legislative Assembly on Wednesday.

In reply to a complaint by MIM member Jaffer Hussain against the ‘Operation Tsunami’ undertaken by GHMC to improve property tax collections, Mr.Rama Rao said there has not been any property tax revision for the last 15 years. Without fair assessment of the tax, the corporation will bleed, he remarked and said the property tax will be revised soon “with members’ cooperation”.

Interest waiver

To Mr.Jaffer Hussain’s request to apply interest waiver on tax in the financial year end, as has been practice so far, Mr. Rama Rao said it will be unfair to the regular tax payers, and an incentive to the defaulters. Yet, he said he will look into the request.

During his reply, Mr. Rama Rao said the property tax collections have been considerably augmented, and reached ₹1,053 crore this year up till now.

Telangana government may soon come up with a plan for effective conservation of heritage buildings in the city through property tax levied on them, he said.

Assuring that it is government’s responsibility to protect the heritage structures, as demanded by Mr.Jaffer Hussain, Mr.Rama Rao said the government is mulling over a proposal to open escrow accounts into which the property tax from heritage buildings may be deposited and used for their conservation. This will be done with coordination between GHMC and the owner of the property, he said.

During his reply, Mr.Rama Rao announced that apart from budgetary allocations, ₹5,000 crore loan will be obtained for development of the city, which will be mostly spent on laying roads.

A Hyderabad Road Development Corporation will be constituted for the same, he said. He also reiterated the intentions to set up a Musi River Front Development Corporation, and a Hyderabad Clean Air Authority. The Building Tribunal proposed during the previous session, will get a chief this year, he said.

Reacting over Mr.Jaffer Hussain’s request for supply of water from Gandipet to Old City, Mr.Rama Rao said the water in Osman Sagar and Himayat Sagar is being preserved for now as both fall under the Musi Beautification Project.

Reeling out numbers, Mr.Rama Rao said GHMC and HMWSSB have received their best ever budgetary support this year at ₹1,000 crore, and ₹1,420 crore respectively.

Efforts are being made to improve the internal efficiencies of both the organisations, so that they become self-reliant in future, he said.

Minister for Roads and Buildings Tummala Nageswara Rao and Minister for Panchayat Raj Jupally Krishna Rao too furnished their replies to the House.

Reacting to Mr.Krishna Rao’s claims of efficiency in implementation of schemes, leader of opposition K.Jana Reddy questioned the release of Rs.600 crore for MGNREGS in February to be spent before March 31.