Deccan Chronicle

Villagers feel the tax pinch

- L. VENKAT RAM REDDY | DC HYDERABAD, SEPT. 5

Rural people living in villages which were merged to create new municipali­ties recently, have started to feel the pinch of taxes. All taxes, barring the property tax will be imposed from September.

About 173 villages have been upgraded to form 38 new municipali­ties. Besides another 131 villages have been merged into existing municipali­ties and corporatio­ns.

The state government has issued directions to municipal corporatio­ns and municipali­ties to start collecting taxes from people living in these villages, which were upgraded, barring only the property tax.

The government promised to exempt upgraded villages from property tax for two years to pacify the residents. The local people had earlier agitated against the upgradatio­n of their villages to new municipali­ties.

The government has directed the urban local bodies to collect taxes on vacant plots/ lands, water charges, market cess, slaughter house fee, building approval charges, rents on municipal buildings/ complexes, town planning fees, mutation fees, trade licence fees, entertainm­ent tax and surcharge on

GOVERNMENT ASKED municipal commission­ers to prescribe fees and taxes as per the new Act and collect 0.22% of market value on vacant lands.

stamp duty. The government asked municipal commission­ers to prescribe fees and taxes as per the new Municipal Act in these villages. They were asked to collect 0.22 per cent of market value on vacant lands/plots.

The government asked municipal commission­ers to fix water charges separately for domestic and commercial purpose.

Villagers, who were getting drinking water for free all these years, will now be forced to pay `30 to `100 per month for domestic use and `250 to `750 for commercial use.

The government asked municipal commission­ers to prescribe the amount of taxes and fees as per the decisions taken in the municipal council meeting. The villagers also lost the benefit of the National Rural Employment Guarantee Act with the upgradatio­n of these villages into Panchayats. Earlier, they used to get a minimum of `200 per day for assured employment of 100 days.

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