Over 5 Lakh Property Owners To Pay An Additional 5% Property Tax In Telangana
With the Telangana State Property Tax Board (TSPTB) approving an increase in rates, residents of the 61 newly formed urban-local bodies (ULBs) in the state will have to pay an additional five per cent property tax in the current financial year. The move will impact four-five lakh households.
Property tax is an important revenue source that is used to step-up the civic infrastructure and a bump in this number will help commissioners undertake and implement developmental initiatives in their respective jurisdiction. Property tax collection in these ULBs had been dismal so far.
Against the combined target of Rs 81.50 crore, these ULBs have been able to collect only Rs 22.50 crore so far this fiscal.
While the TSPTP is strategising on enhanced revenue collection, it was also found that about 26 ULBs were not assessed completely resulting in a poor collection. Action has been initiated against commissioners, who have not completed these assessments and modifications.
On August 1 this year, some gram panchayats were merged into municipalities and constituted into ULBs. The move was to check illegal construction across these areas and bring about a certain discipline in terms of planning. Altogether, this creation of new municipalities and the merger has cost the state Rs 3,000 crore.