No need for GHMC tax hike if state clears dues
Even as the GHMC is getting ready to effect a hike in property tax, citizens and politicians strongly feel if the state government cleared the dues of Rs 1,200 crore to the corporation, the tax hike is avoidable.
The state has not released any special development grant till date to GHMC after merging 12 surrounding municipalities with core city to form the Greater Hyderabad. CPM city committee secretary P.S.N. Murthy said actually it was the state government that was blocking the development of the city by not releasing tax arrears. “The government needs to pay Rs 72 crore per annum towards property tax to GHMC for its 1,186 buildings in city, but has been paying only Rs 20 crore for past one decade,” he said.
TD floor leader Singi-reddy Srinivas Reddy said every year nearly Rs 200 crore professional tax was being collected in city. As per rules, 95 per cent of the total professional tax should be transferred to GHMC, but the government had been giving only Rs 50 crore. Though the CM agreed to allow GHMC to collect professional tax in city, relevant orders had not been issued so far. BJP floor leader Bangari Prakash said, “Transport department has collected over Rs 650 crore motor vehicle tax in 2010-11. Though 10 per cent of total MV tax should be given to local bodies, government is giving only Rs 60 lakh per annum.”
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