NO HIKE IN PROPERTY TAX IN URBAN AREAS

IN

People living within the limits of urban local bodies, including the Greater Hyderabad Municipal Corporation (GHMC), can rejoice at the fact that Navin Mittal, the Principal Secretary of the TS Department of Municipal Administration and Urban Development, has rejected the proposed hike in property tax.

The Department of Municipal Administration and Urban Development had proposed a five percent hike in property tax for all urban local bodies. In addition, they had also proposed amendments to the Telangana Municipalities Act, and the Greater Hyderabad Municipal Corporation Act, to include provisions for enhancement of property tax by five percent every year, without the need for prior approval from the government.

Property tax is one of the main sources of revenue for urban local bodies. Tax on each property is assessed based on its annual rental value and the taxation rate. There are 73 municipalities and six municipal corporations in Telangana. The proposal to amend acts to allow for enhancement of property tax by five percent every year since 2014-15 was mooted in the undivided state of AP, but the current AP government has not issued any orders in this regard.

The central government has approved an annual increase in property tax for all urban local bodies, under the Atal Mission for Rejuvenation and Urban Transformation.

Meanwhile, Mr Mittal has rejected the proposal without any comment. He has simply sent the file back to the concerned section of the department, without referring the matter to the Minister of Municipal Administration.