Hyderabad airport runway property tax may be waived

Hyderabad: The state government is likely to waive property tax for the Hyderabad International Airport runway and taxiway, following a request from the GMR Group.

Municipal minister K.T. Rama Rao on Friday had called a meeting to discuss the request with municipal officials but the meeting was postponed.

Earlier, the municipal administration department had sought a report from the MAUD commissioner on the request.  In his report, the commissioner said that the Indira Gandhi International Airport at Delhi was not paying property tax on the runway and taxiway, but the Bengaluru airport was doing so.

The municipal department later sent the file to the finance department for its opinion. The finance department left the decision to the municipal department.

The undivided AP government had signed an agreement with Hyderabad International Airport Limited on September 30, 2003.

As per the conditions in the agreement, the government would declare the area covered by HIAL as a specified authority and exclude from the jurisdiction of the local authority. In its representation, GM said that despite this, the NAC was collecting property tax.

According to officials, the TS government may exempt GMR from paying property tax but it may not agree to repay the tax already collected.