GHMC's financial condition has slipped into red with the corporation struggling to pay salaries and interests on the loans taken. The funds from the government are also meager and as a result, the corporation is gearing up to pass on the burden to the citizen by increasing the property tax. The property tax did not increase in the last fifteen years. With this, proposals have been made to increase the tax by 40 to 50 percent and the hike will happen once Government gives the nod.
In the Greater area, there are 17 lakh taxpayers in the residential, commercial, and open lands categories. This includes a property tax of 0.50 percent of the market value per annum on open lands, ranging from 60 paise to Rs 1.20 for residential buildings. GHMC charges a minimum of Rs 1 and a maximum of Rs 70 for commercial buildings. GHMC levies tax differently depending on the area. The property tax is highest in Jubilee Hills, Banjara Hills, Begumpet, and Madhapur.
If the tax increases, there will be a huge burden for the citizens. At present, 2 lakh 50 thousand people are paying commercial tax. 3 lakh people are paying Rs 101 tax. The remaining 12 lakh are residential and open landowners. Baldia, which collected property tax of Rs 1,704 crore last fiscal, has set a target of Rs 1,850 crore for the current financial year. Authorities are making every effort to reach this target by the end of next month. Municipal officials estimate that raising taxes by 40 to 50 percent from next fiscal could bring in a revenue of Rs 2,500 crore a year.