GHMC ‘reform’ raises property tax

Hyderabad: GHMC’s reform of the property tax (PT) structure to make it ‘citizen’ has resulted in an increase of at least 50% for residential properties in the city. The GHMC has divided the city into two areas for property tax: Jubilee Hills Circle and Other Areas.

In the Jubilee Hills circle, the new PT would be Rs 1.25 per square foot (sq ft) from 65 paise previously. In all non-Jubilee Hills areas it would be Rs 1 vs 40-50 paise earlier per square foot.

Jubilee Hills circle covers Somajiguda, Khairatabad, Srinagar Colony, Yousufguda, Banjara Hills, Jubilee Hills, Ameerpet, Sanathnagar and Shaikpet.

In the case of vacant land, the registration value will be taxed at 0.50%.

The reform, sources said, was necessary because the GHMC wanted to make the process easier for taxpayers. The owners were forced to travel to the zone offices several times to have their assessments carried out. The problem is compounded by understaffing, they said.

Officials said property tax would be increased under the new system since rental values ​​– the basis for residential property tax – were prefixed at improved rates.

A senior GHMC official who requested anonymity said the automated system would eliminate the differentiation between privileged and upscale areas and those that were disadvantaged in terms of facilities.

However, it would also eliminate any discretion or under-assessment by the property tax assessor.

The new system should bring some relief. For one thing, a property that has been assessed for Property Tax or Vacant Property Tax (PTIN/VLTN) is automatically transferred to the name of the new owner without changing the existing PTIN/VLTN and tax amount. If the registered property is new, the PTIN/VLTN is generated and sent to the GHMC online.

Once the assessment is complete, two messages will be sent to the applicant’s registered mobile number. The first link will lead to the assessment details and the second link will allow the applicant to pay the fee.

Penny D. Jackson