No property tax

- Sunday, November 20, 2011 9:22:54 PM

The Greater Hyderabad Municipal Corporation (GHMC) will not impose five per cent enhancement of property tax though the council approved the City level Development Plan (CDP) or the Total Infrastructure Programme (TIP) to build flyovers and roads.

Mayor B. Kartika Reddy announced after a marathon day long meeting on Thursday that while the plan to be funded with the Rs.600 crore SBH loan was acceptable, tax enhancement should not be done. Earlier, GHMC Commissioner M.T. Krishna Babu was categorical that there would be no tax hike. Rather the effort would be to concentrate on under-assessed, unassessed properties and category change from residential to commercial, he said.

“We are sure that we can double the tax receipts through these methods and even a pilot study indicated the same,” he affirmed. Even while refusing to concede the overwhelming demand for a “corporator's budget” of up to Rs.50 lakh-Rs.1 crore, he urged members to help maintain a balance between expenditure and revenue.

“Works worth Rs.3-4 crore are being spent in each division and a review meeting would be held for each circle every fortnight,” he said. Close to Rs.973 crore worth works are on along with Rs.400 crore worth projects. Projects worth Rs.308 crore await government approval after the standing committee had cleared them. A sum of Rs.450 crore overdraft also is being utilised.

Though the Hyderabad Metro Rail was funding property acquisition across the three routes costing Rs.1, 200 crore, Rs.100 crore has to be spent on road widening. Funds were required for regular maintenance, inner ring road, storm water drains, etc. Works would be prioritised and funds spent equitably based on a division's size and population. At the same time, he admitted that less than one crore rupees was spent in 63 divisions and Rs.1 crore or more in 87 divisions.

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