Hyderabad: The Congress government in Telangana has unofficially revoked the property tax subsidy that was previously provided to low-income and middle-class families. In 2017, the KCR-led government introduced a scheme for properties with an annual property tax of 1,200 or less, under which owners only needed to pay 101 annually. This scheme benefited taxpayers with relief amounting to 100 crore.
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Congress Government’s New Directive
The Congress government has now withdrawn this scheme, directing property owners to pay the full property tax as per revised rates. Officials have been notifying property owners via SMS that the 101 annual tax scheme is no longer applicable, and full tax payments will now be required.
Public Outrage and Procedural Lapses
The decision has sparked widespread anger among corporators and the general public. According to established rules, specific notices must be issued for any amendments to property taxes. However, officials have bypassed this process, relying on SMS notifications to inform taxpayers.
Additionally, notices have been sent to properties with commercial connections, zero-area structures, and those with zero property tax, further increasing public dissatisfaction.
Government’s Action | Property owners must pay full property tax as per revised rates. SMS notifications are sent to inform taxpayers. |
Original Scheme | Property owners with taxes ≤ 1,200 paid only 101 annually, benefiting taxpayers with 100 crore in relief. |
New Directive | Widespread outrage from corporators and the public over the revocation. Concerns about procedural lapses. |
Public Reaction | Notices were issued to residential, commercial, and zero-tax properties. |
Legal Concerns | Rules require specific notices for tax amendments. SMS notifications bypass this requirement. |
Affected Properties | Widespread outrage from corporations and the public over the revocation. Concerns about procedural lapses. |
GHMC Property Breakdown | – 16.35 lakh residential properties – 2.80 lakh non-residential properties – 34,000 mixed-use properties |
Revenue Target for GHMC | ₹2,100 crore for the fiscal year, with ₹1,300 crore already collected. |
Revenue Gap | GHMC aims to generate an additional ₹50 crore by surveying 2 lakh properties and revising tax rates. |
Political & Public Backlash | Corporators and political leaders claim the tax hike is illegal without a GHMC Standing Committee resolution. |
Call for Accountability | Corporators plan to challenge the tax hike at the next council meeting and demand accountability from GHMC. |
Impact on Residents | The sudden tax change is creating financial strain and frustration among residents. |
Revenue Pressure on GHMC
The Greater Hyderabad Municipal Corporation (GHMC) oversees approximately 19.49 lakh properties, including:
- 16.35 lakh residential properties
- 2.80 lakh non-residential properties
- 34,000 mixed-use properties
For the current fiscal year, GHMC set a revenue target of 2,100 crore, of which 1,300 crore has already been collected. To bridge the gap, the corporation is revising property tax rates and surveying around 2 lakh properties to generate an additional ₹50 crore.
Political and Public Backlash
Corporators and political leaders have criticized the move, emphasizing that any increase in property tax requires a resolution from the GHMC Standing Committee and approval from the state government. They argue that bypassing these mandatory steps makes the tax hike illegal.
Call for Accountability
Corporators have pledged to challenge this unauthorized property tax hike in the next council meeting, demanding accountability from GHMC officials. The public has also voiced their opposition, urging GHMC to immediately roll back its unfair policies.
Impact on Residents
The abrupt implementation of this decision has placed a significant financial burden on residents. Many are questioning GHMC’s methods, accusing the corporation of using improper means to boost revenue while disregarding legal procedures and public welfare.