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Tax Hike Proposal Sparks GHMC Row

While the Commissioner proposes a 30% hike in property tax, elected representatives say the GHMC has no right to raise taxes.
Hyderabad | 26th August 2010
The recent proposal by Greater Hyderabad Municipal Corporation Commissioner Sameer Sharma on Wednesday sparked off a major row between him and Mayor Banda Karthika Reddy, Deputy Mayor Syed Jaffer Hussain and GHMC Floor Leaders, over the issue.

The elected representatives challenged Sameer Sharma's proposal of a 30% hike in property tax, saying that the GHMC has no right to impose additional burden on the people especially after failing to address civic issues.

At a meeting held in the Mayor's Chambers at the GHMC head office at Tank Bund on Wednesday, the argument between the Commissioner and the elected representatives grew so intense at one stage that the thin line between an argument and a fight was distorted.

The argument took place well over an hour, during which it was conveyed to the Commissioner that his proposal could be put before the General Council of the Corporation for voting.

Sharma was firm in his view that if property taxes are not increased in this year, the GHMC will have to face many difficulties after 2 years due to paucity of funds.

Sharma told the elected representatives that he has powers to increase the tax by himself in his capacity as the GHMC Commissioner.

This roused the ire of the elected representatives, who told Sharma that he was empowered only when there was no elected body in the GHMC. He was told that since an elected body is present, then his powers do not extend to passing arbitrary orders.

After this, the Commissioner left the meeting in a huff. The elected representatives continued in the meeting for another hour.

The Congress Floor Leader Kaleru Venkatesh suggested at the meeting that a study tour to Bangalore and Mumbai be undertaken to study the procedure of raising property tax.

TDP Floor Leader Singireddy Srinivas Reddy took umbrage at this suggestion, and said that the study tour is redundant since there is no way that the GHMC can increase taxes and escape the wrath of the people. He said that the pitiable condition of the roads and the total lack of any civic amenities will ensure a very harsh and quick reaction against the GHMC if the proposal to increase the property tax is implemented.

Srinivas Reddy said that the condition of the roads in the city is so bad that not only are vehicles breaking down, but drivers are suffering from backaches as well.

He complained that there is no maintenance of street lights, no cleaning of "patches of tarmac that are called roads", no cleaning of parks, and a spread of diseases like malaria and dengue.

MIM Floor Leader Mustafa Ali Baig said that about 20-30% of assessment has not been finished yet. He said that if this is completed, the GHMC will not have to raise taxes.

BJP Floor Leader B Prakash said the disparity between those living in the centre of the city and those on the outskirts is not justifiable. He said the GHMC must chalk out a scientific way of calculating taxes.

The elected representatives affirmed that they will fight to maintain status quo on the property taxes, and said that there was no way they could face citizens if they agreed to the GHMC Commissioner's proposal.

Courtesy: INN
filed in:  GHMC, Property Tax, Sameer Sharma
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