From ET Realty
HYDERABAD: Weeks after elections to the Greater Hyderabad Municipal Corporation, the civic body said it is now mulling plans to increase the property tax rates for commercial and non-residential buildings.
According to GHMC, it is empowered to revise the property tax rates for buildings once every five years. “In the year 2002, the then Municipal Corporation of Hyderabad (MCH) had taken certain decision for enhancing the tax on commercial and business establishments. But it was not taken up,” said GHMC commissioner B Janardhan Reddy.
He further added that the case is being studied by a group of experts who will help the civic body take a decision. “We are trying to emulate this model after learning from the Kanpur Municipality,” he said.
After the formation of the GHMC in 2007, the revision of commercial properties was taken up in October, 2007.
According to a study conducted by M Prasada Rao, an urban governance expert, property tax is levied at such percentage of annual rental value on buildings and lands as may be fixed by the civic body.
Currently, the GHMC has collected Rs 680 crores as property tax, as against a target of Rs 1,100 crores.
“To collect the remaining amount we have deployed senior officials have been deployed to collect arrears from major defaulters. Their dues will be collected by this month end,” said the commissioner, who added that the officials have been empowered to issue red notices to habitual defaulters, as well.