The TDP on Thursday demanded that the GHMC revoke the 300% property tax hike imposed on commercial properties by the GHMC.
Accusing the Greater Hyderabad Municipal Corporation (GHMC) of adopting surreptitious methods to impose a hike on property tax, the TDP on Thursday demanded that such devious methods be stopped forthwith, and the 300% tax hike be revoked.
In a letter to the GHMC Commissioner Sameer Sharma, TDP Floor leader in the GHMC, Singireddy Srinivas Reddy, pointed out that the state government had earlier issued a Government Order (GO), in 2007, which had finalized an abnormal hike of 300% on property tax. However, the government had withdrawn its decision in view of a widespread public outcry against the hike, and had subsequently issued a fresh GO capping any enhancement by 50%.
The TDP leader said that the state government has now issued another GO, which states that the said cap has been removed from commercial properties. The new order will come into force from April 1st, 2011. Taking advantage of this GO, the GHMC Commissioner has ordered the Zonal Commissioners to collect property taxes, with the 300% hike. This essentially means 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 urged the Chief Minister to not lift the cap on the property tax enhancement, and had also sought a discussion to arrive at a workable solution that could enable the GHMC to increase its funds without implementing the cited hike.
Srinivas Reddy alleged that the GHMC Commissioner, instead of opting for the discussion, ordered the Zonal Commissioners to collect the tax on commercial properties at the new rates. He accused the GHMC of implementing the new GO without taking its elected representatives into confidence.
These furtive methods will lead to an uproar by the public, the TDP leader warned, and added that instead of hiking the property tax on commercial establishments, the GHMC can augment its revenue by increasing the tax net base.
He pointed out that the data of erstwhile municipalities, which were merged into the GHMC, is not computerized/updated.
Citing the Quthbullapur and Serilingampally circles as examples, Srinivas Reddy said that many properties in these circles were not included in the tax net.
Besides increasing the tax base, the GHMC should work to obtain Central and State Grants, he pointed out.
Reddy pointed out to the GHMC Commissioner that no steps have been taken to streamline the administration of the corporation, or to post circle-wise Assistant Commissioners to increase the revenue of the Corporation.
He appealed to the GHMC Commissioner to revoke his (Commissioner's) orders to the Zonal Commissioner, and also to issue media statements that the taxes on commercial properties will be collected at the earlier rate.