Hyderabad: The GHMC’s reform of the property tax (PT) structure to make it ‘citizen-friendly’ has resulted in a hike of at least 50 per cent for residential properties in the city. The GHMC has divided the city two zones for property tax: Jubilee Hills circle and other areas.
In the Jubilee Hills circle, the new PT would be Rs 1.25 per square feet (sq. ft) against 65 paise earlier. In all non-Jubilee Hills areas, it would be a Rs 1 against 40 to 50 paise earlier per sq. ft.
The 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 per cent.
The reform, sources said, was needed because the GHMC wanted to make the process easy for taxpayers. Property owners were forced to visit zonal offices multiple times to get their assessments done. The issue is compounded by shortage of staff, they said.
Officials said the property tax would be increased in the new system since the rental values — the bass of residential property tax — were pre-fixed at enhanced rates.
A senior GHMC official requesting anonymity said admitted the automated system would eliminate the differentiation between privileged and upmarket area and those that were underprivileged in terms of facilities.
However, it would also eliminate any discretion or under-valuation by the property tax assessor.
The new system is expected to provide some relief. For one, a property that was assessed for property tax or vacant land tax (PTIN/VLTN) is automatically mutated in the name of the new owner without changing the existing PTIN/VLTN and tax amount. If the registered property is new, PTIN/VLTN is generated and sent to the GHMC online.
After completing the assessment, a two messages will be sent to the applicant’s registered mobile phone number. The first link will lead to assessment details and the second link will enable the applicant to pay the tax.
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