K Chandrasekhar Rao the Chief Minister is all set to give a budget gift to the people under the GHMC by exempting the property tax for the people having houses within the area of two hundred and fifty square yards.
Earlier there was an announcement that people having houses under one hundred square yards are exempted from tax. But the tax department has given tax bills to people having houses in twenty-two square yards in some slums.
They have served bills in the name of arrears and penalties to the tune of a lakh rupees.
The Tax exemption announcement will come during the Budget presentation from the Assembly it is learnt. GHMC is getting prepared to exempt non-commercial houses within 200 to 250 square yards from paying property tax and to increase the tax on commercial and non-commercial property beyond that. A total of 17 lakh people in Greater are paying property tax to GHMC.
Of these, 3 lakh are taxpayers of Rs 101 in slums, while property tax accounts of less than 200 yards are around Rs 2.5 lakh to Rs 3 lakh. From these, GHMC gets a tax of Rs 150 crore to Rs 200 crore.
From all in the previous financial year Rs. 1704 crore property tax was collected. GHMC has set a target of Rs 1,850 crore for the current financial year.
Of this total property tax, less than Rs 250 crore comes from those within 200 to 250 square yards. Giving them a tax deduction and raising the tax on all types of property lanes of more than 250 square yards would double their income.
Although this free scheme is applicable to up to 6 lakh people, the revenue of the corporation will not be reduced.GHMC sent the proposals to the government four months ago. Properties within 200 to 250 square yards for only 35 per cent.
Half of these property owners are poor, middle-class homeowners who pay only Rs 101 a year.
