Home tax hike needed: GHMC
The Greater Hyderabad Municipal Corporation (GHMC) has requested the state government to revise the property taxes of residential and nonresidential buildings that are due since a long time.
GHMC, in a report to the state government, said that in respect of non- residential buildings, property tax was not revised since 2012 and in respect of residential buildings, this was not done after 1999.
Instead, a self-assessment scheme was implemented. GHMC said, “Inaction in this regard has eroded the financial position of the corporation so much so it is not in a position to meet the statutory obligations”.
Meanwhile, the municipal affairs minister KTR has hinted two days ago in the assembly about a revision of property tax in GHMC. Property tax constitutes single largest source of revenue for the GHMC and about 41 per cent of the total revenue comes from property tax.
As per amended municipal laws, property tax shall be revised at least once in five years.
The state government has revised property tax in all urban local bodies in the state in 2002, except in GHMC. In the report, the GHMC said the growth rate of expenditure is far higher in the corporation, whereas revenue growth is less. In 2014, the total income of GHMC was `3166.90 crore. Of this, `1078.58crore was earned through property tax.
In 2015, the total revenue of GHMC was of `2490.27 crore. Of this, `1025.45 crore was earned through property tax. The total expenditure in 2014 was `2830.25 crore while in 2015 it was `3072.25 crore.
The GHMC said the increase in the total expenditure is of `242 crore in 2015, whereas the total income is in deficit of `675 crore.
The state government’s exemption for all below `1,200 annual property tax has led to the GHMC losing `87.39 crore in revenue.
The state government has directed the GHMC to levy property tax with 100 per cent penalty on the buildings constricted on unauthorized lands such as government lands, private lands, patta lands and Wakf lands.
There are about 1.2 lakh such properties in GHMC limits and there will be an estimated additional revenue accrual of ` 40 crore annually in this category.