GHMC hikes property tax by 5%

HYDERABAD: House owners of Greater Hyderabad Municipal Corporation (GHMC) have to pay five percent additional property tax from the next financial year. The GHMC standing committee which met here on Tuesday has approved the proposal to levy additional five percent tax from the next financial year.Mayor Banda Karthika Reddy and GHMC commissioner M T Krishna Babu told reporters that the tax hike is towards  repayment of `600 crore loan being taken from banks and other financial institutions to take up major developmental works, civic and transport infrastructure projects in city.Besides that GHMC is incurring burden in the form of increase in SSR rates up to 15 percent and another 15 percent hike in salaries every year. For GHMC,  property tax is the only source of revenue generating source.Under City Level Urban Infrastructure Improvement programme, GHMC will take up `813 crore worth projects and other developmental works in next two to three years. Of the `813 crore, `294 crore has been earmarked for flyovers, road over bridges (RoBs), road under bridges (RuBs), link roads (`94 crore), road widening (`225 crore), Musi beautification project (`50 crore), New GHMC Council Hall (`50 crore), five parks (`20 crore), improvement of footpaths on various important corridors. Of the `600 crore, SBH has come forward to provide `250 crore at 10.75 percent interest.