Posted On August 19, 2016 By In City And 1060 Views

GHMC hike residential and non-residential property tax

The Greater Hyderabad Municipal Corporation is contemplating to hike residential and non-residential property tax in the range of 5 per cent to 10 per cent. Besides this, the corporation would re-assess 4.5 lakh properties for which the property tax has been decreased from Rs 1,200 to Rs 101.

According to a senior GHMC official, the state government has put about Rs 130 crore on hold which was sanctioned by the Centre as recommended by the 13th Finance Commission.

Besides this, the state government has also reduced the corporation grants from Rs 428 crore (financial year 2014-15) to Rs 11 crore (financial year 2015-16) and also decreased the HMRL funds from Rs 414 crore for the financial year 2014-15 to Rs 100 crore for 2015-16.

As a result, the revenue of the corporation has decreased from Rs 3,149.50 crore in 2014-15 to Rs 2,500.57 crore in 2015-16, while the expenditure increased from Rs 2,832.31 crore (2014-15) to Rs 3,072.25 crore (2015-16).
They said that the city RTC during this financial year has proposed to sanction Rs 290 crore. The officials also said that the corporation, in order to overcome financial crises, utilised Rs 800 crore worth fixed deposits.
A senior GHMC official told The Hans India that in order to overcome the financial crisis and to take up state government’s flagship programmes, including the Strategic Road Development Plan (SRDP) and construction of about one lakh 2BHK houses for the urban poor, the corporation has been left with no option but to increase the property tax.

“The revenue generated through special drives to collect property tax and trade license would be of minimum help. We are even planning to re-asses the properties for which tax was decreased from Rs 1,200 to Rs 101, in order to enhance the revenue. Even that would not be sufficient for the corporation to pull out of the financial mess.”

The official said the corporation in addition would spend Rs 595 crore to construct about 35,000 2BHK houses in 78 notified slums and 39 vacant places in Hyderabad and Ranga Reddy districts. He said that corporation needs about Rs 2,700 crore for implementing the SRDP project.

However, the official said that the decision on property tax would be taken in the last week of September. The official further said that in a series of meetings with Municipal Administration and Urban Development Minister K Taraka Rama Rao, the corporation officials have proposed to increase the property tax by at least 5 per cent to 10 per cent.

Besides this, the corporation also has plans to complete the Charminar Pedestrian Project, white topping of roads, 800 modern bus bays, footpaths and several other new projects, he said.

 

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