Hyderabad: Unscientific means adopted by new ULBs

Hyderabad: Case studies by The Hans India had clearly indicated that since there were no clear guidelines, property tax for residential and commercial buildings was being decided in an unscientific manner resulting in the property owners paying double or in some cases three times more than what would have normally paid. 

The study has revealed that denizens in Manuguru and Yellandu municipalities, the owners of the buildings, were paying almost three times more than the property tax that was collected from them before the two major gram panchayats were upgraded to municipalities two years ago. The new urban local bodies are devising their own tax structures.

M Venkatnarayana (name changed) of Manuguru said he was living in a semi-slum area. He said he was paying property tax equal to the amount fixed in the posh colonies as his house has marble flooring and bathroom accessories like shower and hand shower. The rate of tax for each building should normally vary depending upon the value of the property but how the calculations are being made is not clear, he said.

In Nereducharla and Mothkuru municipalities in old Nalgonda district, the officials said, elected bodies adopted resolutions to increase property tax by three times. So far, no gazette notification was issued on the finalisation of property tax in the newly created municipalities in the district. But the municipal commissioner has approved the same and officials are collecting the tax without any scientific calculations.

In Nereducharla municipality, buildings located in Zone 1 and 2 where the municipalities provided roads and drinking water supply, the property tax has been increased by three times than what it was during gram panchayats. Earlier, it used to be Rs 6 per square metre in the Zone 1 of gram panchayats. Now, it is Rs 18 and in Zone 2 it was enhanced to Rs 15 from Rs 5. In Zone 3, the property tax is Rs 8 per square metre. Earlier, it used to be only Rs 4 per square metre.