Date:12/02/2008 URL: http://www.thehindu.com/2008/02/12/stories/2008021258560300.htm

Andhra Pradesh - Hyderabad

Demand notice for commercial properties soon

HYDERABAD: The Greater Hyderabad Municipal Corporation (GHMC) will be issuing special demand notices to owners of commercial properties within a fortnight for property tax payment as per the new assessment method.

Now that final notification of the new system has been issued, demand notices will have details of the tax as per the new system, dues if any and comparative rates as per the old system. Owners have the option of also contesting the claim with the officials concerned. Tax officials, in the next few days, will be moving round the twin cities to measure each and every single commercial property to measure the precise plinth area to arrive at a figure.

“We have already completed measurement of 60 per cent of the properties numbering 1.5 lakh,” explains Additional Commissioner (Finance) B. Ramesh Babu.

The demand from these properties is to the tune of Rs. 103 crore, but as the new method is being adopted for half-a-year only, he expects to garner anywhere between Rs. 24-30 crore only.

This is also because of the 50 per cent hike limit put by the government.

Mr. Babu insists that the new tax assessment is a continuation of the self-assessment system with innovative features like the age of the building, differential rates between properties on the main roads and lanes, increasing the categories of properties to 20, and so on. The property tax target is Rs. 350 crore and each day collections have increased to about Rs.1 crore only after a lashing by the Commissioner. Officials are confident of getting up to Rs.325 crore though sufficient demand notices are yet to be sent in the suburbs. With the expenditure on new projects and maintenance works nearing the Rs. 900-crore mark from April 1 last year till date, the GHMC is banking on penal fee to be collected under the Compulsory Disclosure Scheme (CDS) to regularise unauthorised constructions.

The option of taking a soft loan or an overdraft of Rs. 400 crore has been kept open to get the development works going in different circles.