The GHMC property tax revision is supposed to happen this year. In general, the hike in property tax rates will happen every five years and the civic authorities do not require approval for this from the government. As the last hike was in 2007, the next revision is supposed to happen this year which is getting delayed. However, with the authorities clarifying that the process is in its final stages, we can expect hike soon.
According to the authorities, they are planning to implement the tax hike in either of the two methods. Either they will ask the property owners, who are currently paying property tax at the rate of three months of the annual rental value (ARV), to pay only one month’s rental value according to the prevailing market rates or they will increase the tax rate per square feet.
The GHMC officials also mentioned that though the owners are paying property tax at the rate of three months of ARV, it is not even coming to the one month’s rent according to the current rental values. So, they may hike the property tax rate to one month rental value of the ARV as per the current rates.
In case, if this method doesn’t work they are ready with the next plan which they are planning to place before the elected body. According to their proposal they would like to increase the minimum property tax to 75-90 paise per square foot from the existing 40 paise. The maximum tax rate would be hiked to Rs 3.80 per square foot from the existing Rs 1.25. Their main motive is to make sure that 10 lakh out of 12 lakh property owners in the city to fall under the tax rate of Rs 1.80 paise to Rs 2.40 per square foot.
The minimum tax would be applicable to the areas with poor infrastructure and other slums while the maximum tax would be applicable in the upmarket areas like Jubilee hills and Banjara hills.
A special committee has been formed at the GHMC headquarters to deal with this hike. Nearly 20% of the properties have been surveyed before fixing ARV. These ARVs along with the proposed rates will be submitted to the committee. Once it gives clearance, a notification will be issued with the proposed rates seeking objection and suggestions from the citizens by giving 15 days’ time.
On the other hand, few sources also mentioned that the property tax for commercial establishments may reduce by 20% as it was increased abnormally during the previous revision in 2007. According to the sources, the tax for the areas like Uppal, L B Nagar, Qutubullapur and Malkajgiri municipal circles may be reduced by 15-20%.
Source: DC, TOI