Deccan Chronicle 05.02.2010

Tax hike only after consultations

Feb. 4: Property tax will not be revised in the Greater Hyderabad limits without consulting the elected body of 150 corporators. The tax rates will neither be rationalised nor hiked unless the GHMC elected body approves it.

Mayor Kartika Reddy gave this assurance to the Telugu Desam corporators who staged a dharna in front of Mayor chambers in the corporation office building. The TD corporators, led by Saidabad corporator, Mr Singireddy Srinivas, squatted before the Mayor’s chambers and raised slogans seeking withdrawal of the proposal to hike property tax.

The row over property tax surfaced after the GHMC officials approached the state government seeking permission to revise the property tax, completely ignoring the elected body.

They should have consulted the 150 corporators before writing to the government, Mr Singireddy said.

The TD corporators contended that less than 60 per cent of the total property owners in the city were paying tax as on date. “Instead of increasing the tax, the GHMC should try to bring the remaining 40 per cent evaders under tax net to increase its revenues. There are thousands of tax defaulters too. It is an act of clear injustice to impose additional tax burden on prompt tax payers,” Mr Singireddy said.

The GHMC officials are believed to have taken only the Mayor into confidence and sent the letter to the government. “The TD will oppose, tooth and nail, any move to hike tax,” TD corporators said. It may be mentioned that the GHMC could collect only Rs 311 crore property tax till date agianst Rs 600 crore.