Property tax waiver: stands to lose Rs 400 cr
Property tax waiver:stands to lose Rs 400 cr.The GHMC was able to take up several new projects last year, thanks to the property tax collection. If the proposal of the Telangana government to waive property tax becomes a reality, the corporation is set to lose Rs 400 crore per year.
The Greater Hyderabad Municipal Corporation’s (GHMC) annual property tax earnings are about Rs 1,090 crore. With the State government planning to exempt tax on residential properties, the corporation stands to lose Rs 400 crore per year. Property tax collection has witnessed an upward swing in the last few years.
In 2013-14, the corporation collected a record Rs 1,022 crore, a jump from around Rs 700 crore in the previous financial year.
The GHMC was able to take up several new projects last year, thanks to the property tax collection. If the proposal of the Telangana government to waive property tax becomes a reality, the corporation is set to lose Rs 400 crore per year.
Many schemes such as the Rs 5 per meal scheme may not be affected but new schemes may be hit, feel senior officials. A major chunk of the property tax collection comes from 11.5 lakh home owners who fall under the Rs 5,000 property tax bracket. There are 1.73 lakh commercial buildings under the GHMC’s jurisdiction.
However, the officials are looking at plugging newer sources for augmenting the property tax. There are more than 20,000 people who pay residential property tax in spite of falling inside the commercial bracket. The government is also planning to amend the Municipal Act and regularise all types of construction.
At present, buildings with only minor deviations are being considered.Laxmi SV, a resident of Domalguda, said, “We are waiting for the government to announce the waiver.If it happens we would be saving a lot on property tax.”
Another resident, Sairam of Sree Apartments in Sainathpuram, said, “I fall under the Rs 5000 bracket and we have two properties. This waiver comes as a boon and the money saved would be helpful for my children’s education.”