The Hindu 04.02.2010
Property tax revision likely
Special Correspondent
GHMC seeks government’s nod due to the political implications involved
HYDERABAD: The GHMC is getting ready to revise property tax rates for both residential and non-residential buildings from the forthcoming financial year of 2010-2011.
It has sought the government’s nod because of the political implications involved though as a local body the GHMC is empowered to issue a notification straightaway. Citing its weak financial state, removal of 50 per cent hike cap put on non-residential (or commercial buildings) a couple of years ago, when tax rates were enhanced last time, was also urged.
More of rationalisation
Then the government also did not allow any revision of tax for residential properties. There is not going to a straightaway hike but “rationalising” of tax structure with varying rates area wise unlike the present uniform structure, claim senior officials.
They also point out self-assessment of property tax introduced more than a decade ago with a base rate between Re 1 to 40 paisa had “outlived” its purpose. “How long can we have a common tax rate for all areas having different property values,” asked a senior official.
When tax structure was rationalised for commercial properties, the city was divided into 115 main zones and 300-odd minor zones with rates depending on property usage. The city is to be divided into 30-40 zones for residential properties to decide the rates. The calculation of tax is also to be simplified with a fixed rate per square foot of property depending on the proposed new zone.
“This will remove discretionary powers of bill collectors,” explained the official. A draft notification calling for objections and suggestions would be issued before implementing the revised tax rates.
