Hyderabad: The issues of sharing of property tax and professional tax being collected in the joint capital of Hyderabad has sparked off a fresh controversy between the Telangana and Andhra Pradesh governments.
The Telangana state government has been demanding that Andhra Pradesh pay half the property tax for using government buildings and offices located in Hyderabad. It is also seeking payment of professional taxes that are being deducted from Seemandhra employees and professionals working in Hyderabad, to GHMC. However, there has been no response from the Andhra Pradesh government on this issue.
The Telangana government has decided to issue notices to the Andhra Pradesh government, demanding payment of these taxes amounting to nearly Rs 217 crore, of which professional tax amounts to Rs 165 crore and property tax Rs 52 crore.
The state government in undivided Andhra Pradesh had been paying property tax for government buildings and offices located in Hyderabad to GHMC every year all these years. Official sources said the property tax amounted to Rs 100 crore every year, which was paid in two to three installments. However, with the bifurcation of AP on June 2, the property tax dues for 2014-15 have not been paid by the governments.
The Telangana government has been arguing that since the Andhra Pradesh Reorganisation Act 2014 has divided everything between Andhra Pradesh and Telangana in the ratio of 52:48, the same applies to taxes.
It has thus agreed to pay only its share of Rs 48 crore out of Rs 100 crore and has released Rs 16 crore to the GHMC as the first installment. It has asked the GHMC to collect the balance Rs 52 crore from the Andhra Pradesh government.
