Hyderabad city's 118 road stretches to come under commercial property tax net
HYDERABAD: The GHMC is bringing 13,012 properties along 118 road stretches into the commercial property tax net. The commercial stretches include the one from Madhuranagar Colony near Wells Fargo to Nanakramguda Outer Ring Road exit, Road Number 45 in Jubilee Hills from HDFC Bank to UMI Group, Himmatpura in Bahadurpura to Moti Galli, Omni Hospital in Kothapet to Nagole crossroad, and Narsapur crossroad in Balanagar to Gandimaisamma.
According to estimates, collecting commercial property tax from buildings on these road will fetch GHMC at least Rs 25 crore of additional revenue. The corporation has till date collected only Rs 900 crore against the target of Rs 2,000 crore.
The commercial property tax will be in addition to the impact fee being already levied.
As per GO 102 dated July 7, hospitals and schools operating in G+1 buildings will have to pay an impact fee of 2 per cent or Rs 100 per sq ft. If the establishment is operating from a building with more than one floor, impact fee will be 1 per cent or Rs 50 per sq ft. Earlier, a lump sum rate used to be charged based on category of the road. Now, the fee will be based on land value and category of building use.
GHMC will not levy this impact fee, where the building is part of a commercial belt or has already been earmarked for commercial use in the master plan. The commercial impact fee for a building that has only one floor or less (only ground floor) is 6 per cent or Rs 300 per sq ft. For structures with more than one floor, the fee is 3 per cent or Rs 150 per sq ft.
The impact fee collected on these roads will be deposited in an escrow account of Strategic Nala Development Project (SNDP).
Only 50 per cent fee will be collected from hospitals, nursing homes, educational institutions, and standalone stores along the new and existing road stretches in GHMC limits. The fee for these establishments ranges from Rs 50 per sq ft to Rs 100 per sq ft. This fee will not apply to jewellery stores, supermarkets or retail chains.
A senior GHMC official told Deccan Chronicle on condition of anonymity that civic body commissioner D.S. Lokesh Kumar has instructed officials to focus on revenue collection.
