GHMC hikes commercial property tax, TDP cries foul

Hyderabad, March 31 (INN): Accusing the Greater Hyderabad Municipal Corporation of adopting surreptitious methods to impose a hike in property tax, the TDP on Thursday demanded that such devious methods should be stopped forthwith and the 300 per cent tax hike revoked.

In a letter to GHMC Commissioner Sameer Sharma, TDP Floor Leader in the GHMC Singi Reddy Srinivas Reddy pointed out that the state government had earlier issued a GO in 2007 finalising an abnormal hike on property tax by 300 per cent. However the government took back the decision after widespread public outcry and subsequently issued a fresh GO, capping any enhancement by 50 per cent.

The TDP leader said that the state government has now issued another GO where the said cap has been removed from the commercial properties and these orders will come into force from April 1, 2011. Taking advantage of this GO, the GHMC Commissioner has ordered the Zonal Commissioners to collect property taxes with a 300 per cent hike. This would essentially mean that a commercial property owner will now have to pay Rs 300 as against the Rs 100 paid earlier.

The TDP leader pointed out that his party had represented to the Chief Minister not to lift the cap on the property tax enhancement and had also sought a discussion to find out ways to arrive at a workable solution where the GHMC funds can be increased without effecting a hike in property tax.

Mr Srinivas Reddy alleged that the GHMC Commissioner, instead of opting for a discussion on ways to find a workable solution, ordered the Zonal Commissioners to collect the tax on commercial properties at the new rates by implementing the new GO without taking the elected representatives of the Corporation into confidence. These surreptitious methods would lead to a public outcry, the TDP leader warned.

Instead of hiking the property tax on commercial establishments, the GHMC can augment its revenue by increasing the tax net base, he stated.

The TDP leader pointed out that the data of erstwhile municipalities which were merged in the GHMC is not computerised and not updated. Naming the Quthbullapur and Serilingampally circles as examples, Mr Srinivas Reddy said that many properties in these circles were not included in the tax net, thereby causing a loss to the GHMC.

Apart from this, the GHMC should work to obtain Central and State Grants in lieu of professional tax, transfer of properties etc apart from the road tax charged by the RTA, he pointed out.

Mr Srinivas Reddy further reminded the GHMC Commissioner that no steps to streamline the administration of the Corporation have been taken. Neither have steps been taken to post circle-wise Assistant Commissioners to increase the revenue of the Corporation, the TDP leader pointed out.

Instead of hiking the tax, the GHMC must first streamline its functioning so that the revenue ambit is widened, Mr Srinivas Reddy opined. He appealed to the GHMC Commissioner to revoke his orders to the Zonal Commissioner and also issue media statements that the tax on commercial properties will be collected at the earlier rate.