GHMC all set to double residential property tax
Hyderabad- The city will soon witness 100 percent hike in residential property tax. However, the property tax rates for commercial buildings in some of the areas may reduce.
In this regard, the Greater Hyderabad Municipal Corporation (GHMC) will invite suggestions and objections from citizens on the new tax rates within seven days. The last revision of tax rates for residential properties was performed 16 years back.
As per sources, the hike in tax rates on residential buildings is 200 percent in few areas. It is 100 percent in most of the areas in Hyderabad. The residents of Hitech City, Madhapur, Kondapur and Gachibowli areas will have to cough less tax as compared to those of Banjara Hills and Jubilee Hills.
The tax rates in Banjara Hills and Jubilee Hills is proposed to increase from existing Rs 1.25 per square feet to Rs 3.50 per sq feet. The maximum hike proposed for Hitec City and Madhapur is from 93 paise per sq feet to Rs 3.05 paise per sq feet. While in Gachibowli and Kondapur, the maximum hike proposed is from 93 paise per sq ft to 2.80 paise per sq ft.
Property tax has been increased in two phases for commercial buildings. In 2007, the first hike (50 percent) was done for buildings which were constructed after 2007. In 2012, the second hike (50 percent) was done for buildings which were constructed before 2007.
Many complaints were registered from property owners of commercial buildings of areas like LB Nagar regarding higher rates as compared to upmarket areas. Thus, the tax rates of areas like LB Nagar, Uppal, Qutbullapur, Malkajgiri, Kapra, Vanastali Puram, Kothapet, Kukatpally, Saroornagar, Karmanghat, Gaddiannaram etc. has been rationalised and is all set to be reduced by 25 percent to 30 percent.
The tax rates have been decided on the basis of study-cum-survey of 20 percent randomly selected properties in each area. The current rental values which are linked to existing civic infrastructure area-wise were taken into consideration to decide tax rates, says an official.
The civic facilities like drinking water, underground drainage, network, roads, street lights, educational institutions, health centres, markets, shopping malls, playgrounds etc were used to determine tax rates.
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