Urban News

The Deccan Chronicle  26.08.2010

GHMC tax hike plan rejected

Hyderabad, Aug. 25: The Mayor, Ms Kartika Reddy, along with the deputy mayor and floor leaders of the Congress, MIM, Telugu Desam and the BJP, in a unanimous decision on Wednesday asked the Greater Hyderabad Municipal Corporation commissioner, Dr Sameer Sharma, to drop the idea of increasing property tax.

The GHMC has proposed an increase in property tax by 30 per cent from the next financial year and thereafter five per cent hike every year.

They suggested that the GHMC constitute a committee of corporators and officials to visit other cities in the country to study the tax structure and also the quality of civic services being extended by other municipal bodies.

Ms Kartika Reddy said the corporation should find other sources of raising revenue. There are thousands of properties on which property tax is still not being collected. They can be brought under the tax net and also under-assessed properties can be re-assessed.

The deputy mayor, Mr Jaffar Hussain, said increasing property tax without providing good civic services would amount to committing a crime.

“The roads are in the worst condition and the civic body has failed to take up proper repairs so far this rainy season. The MIM is against the proposed hike in property tax. Just because the corporation wants to obtain a loan of ` 600 crore to complete pending projects, it cannot plan to raise revenues by increasing tax,” he said, and demanded that the proposal first be tabled in the GHMC general body meeting.

The Congress floor leader, Mr Kaleru Venkatesham, said the GHMC should not act in haste. “Before getting public feedback, we will not allow the hike,” he said.

TD floor leader, Mr Singireddy Srinivas, said, “The government should support the GHMC by extending finances for completion of projects.”

The BJP floor leader, Mr Bangari Prakash, said any hike in taxes at this juncture would break the backbone of the citizens who are already burdened with high prices of essential commodities.

The Deccan Chronicle  25.08.2010

Hyderabad, Aug. 24: The GHMC officials are likely to face stiff opposition to their proposal to hike property tax rates by 30 per cent. Even the MIM, an ally of the ruling Congress, has taken a strong objection to the proposal. The deputy mayor, Mr Jaffar Hussain, of the MIM said the GHMC would do better to concentrate on improving the civic services instead of planning tax hikes. “The MIM will oppose the tax increase proposal in the standing committee. We will meet the Chief Minister, Mr K. Rosaiah, and urge him to direct the GHMC to drop the proposal,” Mr Hussain said.

“On what basis has the corporation planned this tax hike? The officials’ explanation that the per capita tax is over `1,000 in Mumbai, Bengaluru and Ahmedabad and is less than `500 in Hyderabad does not stand good. The GHMC should conduct a survey to ascertain the civic services, sanitation and municipal services in each city in comparison to Hyderabad,” said the TD floor leader in the GHMC, Mr Singireddy Srinivas. The BJP floor leader in GHMC, Mr Bangari Prakash, said the corporation has not repaired the rain-damaged roads.

The Congress floor leader, Mr Kaleru Venkatesh, said, “We are not against the hike, but it should be affected after consulting citizens. Besides, the hike should be gradual and not 30 per cent in one go.” However, the officials are confident that they will convince the elected body of corporators on the tax hike issue. The officials have called for a meeting on Wednesday with the mayor, deputy mayor and floor leaders of the Congress, MIM, TD and the BJP to discuss the tax hike issue.