Hyderabad: The Telangana state government has proposed to hike property tax in municipalities soon. Chief Minister K. Chandrasekhar Rao asked officials to draft proposals for an increase in property tax, stating that there has been no revision of rates since 2006.
The Secunderabad Cantonment Board had hiked property tax in its limits recently as it falls under the Union defence ministry.
The government is feeling the pinch of municipal staff going on strike frequently demanding a hike in salaries.
Officials submitted a report to the government stating that the salary hike would not be possible unless property taxes are revised upwards.
Based on this report, Mr Chandrasekhar Rao asked officials to draft proposals to increase property tax.
Though the municipal staff all over the state had gone on strike for nearly two weeks, Mr Rao had a approved salary hike only for GHMC staff.
The staff in other municipalities and municipal corporations in Telangana are still on strike, with the government yet to respond on their salary hike demand.
Mr Rao is expected to approve the salary hike for the remaining municipalities and corporations also in a day or two but with a condition that property tax in these municipalities will be increased to meet additional financial requirements.
Mr Rao has set up a committee headed by chief secretary Rajiv Sharma to study the financial condition of municipalities and corporations. The committee submitted its report to the government on Thursday.
It is learnt that the committee recommended a property tax hike to meet additional expenditure on account of the salary hike.
Pinch after staff pay hike: The Secunderabad Cantonment Board had hiked property tax in its limits recently as it falls under the Union defence ministry
Though the municipal staff all over the state had gone on strike for nearly two weeks, Mr Rao had a approved salary hike only for GHMC staff.
Officials submitted a report to the government stating that the salary hike would not be possible unless property taxes are revised upwards.
