The Hindu : Front Page : MCH plans area-based property tax system

Online edition of India's National Newspaper
Tuesday, Jan 31, 2006

Front Page

Front Page

MCH plans area-based property tax system

Staff Reporter

`Performance-based budget' with an outlay of Rs.1,018.59 crores presented for the year 2006-2007

HYDERABAD: The Municipal Corporation of Hyderabad will have an `area-based property tax system' from the next financial year wherein residential and commercial property rates will be fixed as per their location.

"We will prepare the new system in three months. There will be no discrepancies as taxes will be computer-generated," said Commissioner Sanjay Jaju at a special meeting of the Council here on Monday.

He said the prevailing self-assessment property tax system had been pretty successful and had served its purpose.

"We have reached a plateau with regard to our collections in the last couple of years and if we are to reach the projected figure of Rs.250 crores next year, we have to reform," he affirmed.

With two months to go for the current financial year to end, the Corporation has collected Rs.125 crores, which is Rs.10 crores more than the corresponding figure last year. Mr. Jaju is hopeful of touching Rs.200-crore by March-end.

Earlier, Standing Committee Chairman D. Mohan presented the `performance-based budget' for the year 2006-07 with an outlay of Rs.1,018.59 crores. Bharatiya Janata Party (BJP) Floor Leader Shyam Sundar Goud immediately picked up holes in the document's facts and figures.

He wondered why funds allocated for slums were not spent last year and if property tax projection would be met.

He charged the Government of step-motherly treatment towards MCH in not releasing its grants and demanded a proper audit of accounts.

Mr. Jaju admitted that dues in the form of property taxes from both Central and State Government buildings and profession tax up to Rs.80 crores plus stamp duty receipts were yet to be reimbursed.

Advertisement revenue was, however, going to touch Rs.17 crores, making it second highest in the country after Mumbai.

Micro-plans for slums

MCH would "surely spend Rs.200 crores in capital works next year," he said, adding that micro plans for slums' improvement were being prepared.

He also agreed to allocate Rs.10 crores for modernisation of slaughterhouses following persistent demand by Deputy Mayor G. Subash Chanderji.

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