Commercial Structures to Face Property Tax Hike

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The Greater Hyderabad Municipal Corporation increased the property tax for commercial establishments of the city. The enhanced tax is supposed to convey about Rs. 250 crore additional revenue. The core area of the city alone may get about Rs. 115 crore.

The core area of the erstwhile Municipal Corporation of Hyderabad is found to have 81,577 commercial properties. There are more three lakh commercial establishments in the 11 surrounding municipal circles.

As per the rules 9, 10 and 11 of the Hyderabad Municipal Corporation, 1990, the revision of the property tax was restricted to 75% with respect to residential buildings. It was found to be 100% and 150% on the current tax on non-residential buildings of above 25 years old and less than 25 years respectively. The tax was proposed to enhance by 50% on the existing tax on commercial buildings. However, in February 2010, the government gave permission to rise the tax after the corporate elections. In the trial of increasing the tax, an extensive survey was conducted in 2007. A new tax system was proposed where the tax was determined to be fixed on the basis of construction type, its usage and its area.

A GO (MS No 88) was issued by the Municipal Administration and Urban Development (MA&UD) in March 2011 to rise the property tax for commercial buildings. The core city circles including Abids, Khairatabad and Secunderabad have already faced property tax hike for the financial year 2011-12.

Source: TOI

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