Hyderabad, May 2: The merger of 27 urban local bodies into Greater Hyderabad Municipal Corporation has led to confusion over property tax collection, with residents facing two different taxation systems within the same city.
Dual Tax System Sparks Confusion
Officials currently follow different methods:
- In old GHMC areas, property tax is calculated based on rental value
- In newly merged municipalities, it is based on capital value (sub-registrar rates)
This has resulted in residents in the same urban region paying taxes under different systems.
People from areas like Meerpet have approached the Telangana High Court seeking clarity and relief.
Revenue Sees Sharp Increase
Following the merger, property tax collections have risen significantly.
- 2025–26: ₹2558.80 crore collected
- 2024–25: ₹2038.46 crore collected
Officials attribute the ₹520 crore increase to the expanded jurisdiction and capital value-based taxation in merged areas.
Govt Weighs Policy Changes
With the expansion under the Telangana Core Urban Region (TCUR), officials expect further growth in revenue.
There are discussions on whether to:
- Continue the existing dual system temporarily
- Or introduce a uniform tax policy across the city
Authorities have studied models in cities like Mumbai and Bengaluru, where capital value-based taxation is widely used.
Residents Raise Concerns
Citizens allege that higher taxes are being collected in merged areas like:
- Banjara Hills
- Jubilee Hills
- Gachibowli
- Kokapet
- Manikonda
- Madhapur
- Kondapur
Residents argue that despite court directions, tax collection continues aggressively.
What Lies Ahead?
Officials say any final decision will aim to:
- Increase revenue without burdening citizens excessively
- Ensure uniformity and transparency
If a new system is implemented, GHMC’s property tax revenue could reportedly cross ₹5,000 crore annually.
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