Owners question politicos vow to reduce property tax

LB Nagar: Constituents have been suffering from property tax issue despite it being a key election promise since 2009. Almost a decade has passed with nothing happening on the issue. It became a golden goose in the hands of political parties. Incidentally, whoever promised to solve it got elected in polls. For instance, in 2009 elections, Congress candidate Devireddy Sudheer Reddy made a poll promise on it and won the constituency. Similarly, BJP backed TDP nominee R Krishnaiah made the same issue his poll weapon and was elected to the Assembly in 2014 elections. 

However, the reduction of property tax became an unfulfilled wish to the people. In the recent elections, Sudheer Reddy, who had promised that this time the problem would be resolved at any cost, won the seat. Especially, the property owners under LB Nagar Circle, Hayath Nagar circle and Saroor Nagar Circles have been suffering a lot from high taxes. Non-residential property owners are also complaining about high burden of tax. They said that so many times they submitted representations to the officials, but they turned out to be futile. Now with elections getting over, as per the instructions from the higher authorities, the revenue officials of GHMC have been focussing on the collection of property taxes. They are issuing red notices to commercial properties. They received 220 applications for regularisation of properties in 2015, but no action was taken. 

People are complaining that the rate of tax here is on par with the rate in posh localities, such as Banjara Hills, Jubilee Hills and Madhapur. For instance, shop rent at Jubilee Hills is between Rs 16 and 20 per sqft, whereas Rs 10 to 12 was charged for the same area in most places in LB Nagar constituency. But the collection of property tax by the GHMC is the same from Madhapur to Hayath Nagar. The property owners in the constituency are demanding reduction of the rate from so many years. 

According to Municipality Act, the amendment of rate should be taken up every five years, but it did not happen during the merger of LB Nagar municipality with GHMC. The assessment of residential property tax was done in 2002, and the same for non-residential was done in 2008. As per gazette no. 21 dated January 29, 2008, rate of tax was fixed based on the areas and the usage of the property. The officials took circle as a unit. Now, the higher authorities set Rs 130 crore as collection target by the end of February and sent orders to concerned officials in this regard. Bill collectors are now busy sending red notices to the property owners. The owners are putting their hopes on MLA Devireddy Sudheer Reddy in solving the problem.

BY Pasunuru Venkatesh