Illegal structure owners in Hyderabad will be hitting hard

By Accommodation Times News Service

The owners of unauthorized structures/floors will soon have to take out more property tax. The Greater Hyderabad Municipal Corporation (GHMC) has decided to collect 100% more on normal property tax as penalty on new illegal constructions as against the existing 25% levied by the civic body. The corporation is likely to implement the new penalty rule from April 1, 2013. Incidentally owners of over three lakh properties of the 12 lakh assessed by the corporation might have too pay the additional property tax. Officials of GHMC said if the normal tax is Rs 1,000 the owner of unauthorized construction will have to pay more then that as property tax. The new tax rule will be applicable to all types of buildings like individual houses, flats, encroachments on government land and assigned land. With this new rule it seems that GHMC is estimating to get Rs 30 crore additional revenue. Adding further officials said the idea behind the proposal of enhancing penalty on illegal constructions was to deter property owners from raising unauthorized structure. Originally the provision for collection of 100% additional tax on illegal constructions was incorporated in the New Building Rules (GO 86) issued in 2006. The GHMC has been collecting only 25% more tax on illegal buildings as per the Act.

Apart from imposing tax on the unauthorized construction, the CM reportedly cleared the proposal to levy property tax on squatters of encroached government land or municipal land or any category of land which will also attract 100% additional tax. Until now, illegal construction on government land was not assessed as there was ambiguity in the GHMC Act on assessment of the encroached land. The corporation officials argued that squatters were enjoying civic amenities and other facilities like other tax payers and the civic body was loosing revenue.

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