Tax holiday from GHMC budget

Hyderabad: Tax payers fail to benefit much from the Rs 1000 crore budget allocated to the GHMC though are saved from enhanced taxes.  Of the total budget, 37 per cent that is Rs 377.35 crore has been slotted for Musi riverfront development project and another Rs 377. 35 crore for Greater Hyderabad road improvement. As part of the  remaining amount, the state government has paid the corporation property tax on government buildings and salaries of employees,  which it would had to without a say.

It should be noted that 70 per cent of the state’s revenue is generated from Hyderabad. The city generates close to Rs 80,000 crore of the Rs 1.49 lakh crore.

Speaking to this newspaper, MLC Syed Amin Jafri said, “The direct relief to citizens would be in form of tax rebate or concession. But, it should be noted that through the Rs 1000 crores allocated, the corporation will now not contemplate on enhancing its charges. What citizens got out of the deal is, they are saved from hike in taxes. The advantage is boost in infrastructure”.

The Telangana government, for the first time in three years  has given a sum to GHMC. At the same time the corporation is trying to raise Rs 3,500 crore through bonds and loans, on a whole Rs 4,500 will be available to GHMC. For  the current year, the GHMC is running in deficit, as it has not received any financial assistance from the state government after it funded the TS road transport authority.  GHMC Commissioner stated that the citizens would be benefited out of the budget in form of infrastructure boost.

Breakup of budget revenue

• Budget approved by the state government
• Musi Riverfront Development – 377.35 crores
• Assistance for improving roads in Greater Hyderabad – 377. 35 Crore
• Salaries – 5.06 Crores

What the GHMC would get any how

• Property tax on government building (140 existing ) – 29.04 Crores
• Taxes on vehicles (a percent of revenue collected from Vehicle registration goes to GHMC) – 0.37 Crore
• Octroi or Entry tax (revenue generated through goods transports from inter state )  – 0.01 Crore
• Professional Tax compensation- 30.94 Crores
• Property tax compensation – 1.86 Crores
• Note : The GHMC has estimated a budget of 2018 crores and had sought the same from the state government.