The Hindu : Andhra Pradesh / Hyderabad News : Hike in property tax for shopping complexes

Online edition of India's National Newspaper
Wednesday, Sep 26, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Hike in property tax for shopping complexes

HYDERABAD: The Greater Hyderabad Municipal Corporation (GHMC) has sharply hiked property tax rates for commercial properties, including shopping complexes, offices, banks, ATMs, hotels, hospitals, etc., and is expecting to mop up about Rs. 500 crore.

While a public notification is to be issued in a few days time calling for suggestions and objections from citizens, the new rates are likely to come into effect from next month, officials indicated. The originally thought of idea of having a differential rate structure depending on the geographical locations has been given up for now.

But, what GHMC has done is to have a differential rate structure depending on the kind of commercial operations being conducted as in hotels, hostels, hospitals, and the likes. The steep rise has been reserved for hoardings (up to Rs. 100 per sq.ft), ATMs (Rs.70), shopping complexes and educational institutions (Rs.40 each).

Following are the changes in tax rate: Shops – 50 paisa per sq.ft (minimum) &o Rs. 16 per sq.ft (maximum), shopping complexes – 50p & Rs. 40, offices – 50p & Rs. 18, banks – 50p & Rs. 20, ATMs – Rs. 20 & Rs. 70, hospitals – 50p & Rs.12, dispensaries/diagnostic centres – 50p & Rs.9.50, educational institutions – 50p & Rs. 40, hostels – 50p & Rs. 8, gyms – 50p & Rs. 13 and star hotels – 50p & Rs. 18.

Bar & restaurants – 50p & Rs. 18, lodges/guest houses/restaurants – 50p & Rs. 11, godowns – 50p & Rs.32.50, petrol bunks – 50p & Rs. 16, cellular towers/hoardings – 50p & Rs.100, factories/mills/workshops – 50p & Rs.10, cinemas/ clubs – 50p & Rs.18, marriage halls/community halls – 50p & Rs.10.

About 14.92 lakh properties have been enumerated in the capital region and at least 40 per cent of them are expected to be commercial properties. While the demand is for garnering Rs. 379 crore, GHMC aims to reach the Rs. 500 crore mark with better assessment and compliance based on the survey it wants to take up.

Last year the core city area comprising of the erstwhile MCH collected about Rs.210 crore after setting itself a target of Rs. 225 crore. The ex-municipalities altogether are reported to have got about Rs. 150 crore.

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