The Greater Hyderabad Municipal Corporation (GHMC) has no plan to increase the property tax rate in the next financial year of 2012-13 to meet the target of Rs.720 crore, Commissioner M.T. Krishna Babu announced during the special budget meeting of the council on Thursday.
“We have considered the present demand of Rs.800 crore - including likely revenue - from the under-assessed and un-assessed properties. In April and May, our staff will be going round different circles and check properties to bring all of them into the tax fold,” he explained.
The government was already approached to amend the law so that tax can be charged from properties that have come up in government lands, urban land ceiling lands and notarised properties. “We can get another Rs.200 crore from these so our target is not unrealistic,” he said. Till his reply, the supposed hefty hike in property tax rates on buildings being collected in the current financial year almost hijacked the meeting, the maiden one presided over by Mayor Majid Hussain. Most members save for Majlis demanded proper redressal of complaints from citizens.
They also expressed the fear that tax collection target for the coming year would mean more burden on the people. From Telugu Desam floor leader Singireddy Srinivas Reddy to Congress floor leader K. Venkatesh and BJP floor leader B. Prakash, the tax issue was highlighted prominently.
Common allegation was that enhanced tax bills by 200 to 300 per cent were being sent to owners. Another point issuing uniform notices to all old buildings under the unauthorised constructions category thereby putting a surcharge of 25 per cent.
Mr. Krishna Babu clarified that the government took a policy decision on collecting 25 per cent more tax from unauthorised constructions. When tax was hiked in 2007, it was made applicable for new constructions because of a government cap.
Since the ceiling has been removed later all buildings whether built before or after 2007 have to comply with the rate dependent on type of construction, plinth area, etc., he said and added that a fresh notification was due later this year as five year period was up.
