Hyderabad property tax rates to increase next year

Published on by 7bighagroup


Be prepared to pay five per cent more property tax every year beginning April, 2012. The decision to increase property tax has been taken by the Greater Hyderabad Municipal Corporation (GHMC) to repay the Rs 600 crore bank loan being taken for various developmental works in the city.

Announcing the Greater Hyderabad City Level Development Plan at a joint press conference on Tuesday, GHMC mayor Banda Karthika Reddy and commissioner MT Krishna Babu said infrastructure and other developmental works would be taken up at a cost of Rs 813 crore in the next two years.

Of Rs 813 crore, the GHMC has decided to take Rs 600 crore loan from the State Bank of Hyderabad at the rate of 11.25 interest. “With the loan, various works like construction of flyovers, rail over bridges, rail under bridges, road widening, junction improvement works, Musi development plan and construction of community halls will be taken up,” the mayor said. A few months ago, then GHMC commissioner Sameer Sharma had decided to improve infrastructure under the Total Infrastructure Provision (TIP) at a cost of Rs 600 crore. About 800 colonies were identified by the authorities to implement the programme. After finalising the modalities, the GHMC even called for expression of interest from banks and other financial institutions.

Soon after Krishna Babu took over as the GHMC commissioner, he replaced the TIP with City Level Development Plan and decided to take up works like flyovers and other infrastructure works with the loan amount.

The mayor said a separate escrow account would be maintained for the project and contractors would get payments directly from the banks after completion of the respective projects.

On the property tax collections, the commissioner said the property tax was being collected only from 10.50 lakh households, where there were 21 lakh households as per the 2011 census. He said efforts were being made to cover all houses within six to seven months.

Krishna Babu said efforts were being made to get 10 per cent vehicle tax and profession tax from the state government. Ironically, the GHMC has not made any efforts to reduce wasteful expenditure and put any restrictions on sops being given to corporators like laptops, study tours and expenditure on its own officers.

The GHMC commissioner appealed to the people not to purchase unauthorised constructions. He said building plans would be made available at all citizen service centres soon. On footpath encroachments, Krishna Babu said removal of encroachments would be taken up in the first week of every month for the next four to five months and cellar violations would also be removed in a phased manner.


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