Hyderabad: Residents of gram panchayats surrounding Hyderabad city and other urban local bodies will see a three-fold increase in property tax.
A total of 173 gram panchayats will be merged into surrounding municipalities and municipal corporations. Besides 71 new municipalities will be created by merging gram panchayats, following amendments to the Municipal Act passed by the Assembly in March. Besides, a provision was made to merge surrounding gram panchayats with existing municipal corporations and municipalities to make them bigger and viable.
People who are paying up to Rs 70 lakh property tax per year in each gram panchayat would now have to pay up to Rs 2 crore, after they are upgraded as urban local bodies. Residents have opposed the measure. fearing financial burden on account of various taxes. The government has promised to give exemption from tax hikes for a year.
Going by current developments in the municipal administration department, the tax hike looks imminent from August. The term of existing gram panchayats end on July 31, and the rural bodies will be upgraded as municipalities in August.
It was decided to merge 136 gram panchayats in five municipal corporations and 36 municipalities.
MAUD officials have obtained property tax collection details from all gram panchayats facing upgradation to assess how much property tax should be levied. This assessment found that the property tax would increase three-fold.
For instance, people in Badepally gram panchayat in Mahbubnagar district are currently paying Rs 74 lakh property tax. This will increase to Rs 2 crore after it is upgraded into a municipality. There will be similar increase in property tax in other districts.
