GHMC Merger: 27 Municipalities Face Property Tax Shift & Bureaucracy Fears
GHMC Merger Sparks Mixed Reactions on Property Tax

The proposed merger of 27 municipalities with the Greater Hyderabad Municipal Corporation (GHMC) has generated contrasting responses from residents across different geographical locations. While those living closer to the urban core anticipate financial benefits, residents of outlying areas express concerns about increased tax burdens and reduced administrative accessibility.

Property Tax Disparity Drives Mixed Reactions

Residents of municipalities situated near the urban core, including Manikonda, Tellapur, and Narsingi, view the potential merger as an opportunity to reduce their property tax burden. The current system reveals significant discrepancies, with homeowners in Tellapur paying between ₹20,000 and ₹30,000 annually for properties similar to those just 200 meters inside GHMC limits, where residents pay approximately 50% less.

Ramana Eshwaragiri, President of the Tellapur Neighbourhood Association, highlighted this imbalance: "We are paying almost ₹35,000 a year as property tax, whereas those just across the road that falls within GHMC pay under ₹15,000. A merger may finally correct this imbalance."

Outlying Municipalities Fear Tax Increases

Meanwhile, residents of municipalities located farther from the urban center express apprehension about potential tax hikes following the merger. In Peerzadiguda, residents currently pay between ₹5,000 and ₹10,000 as property tax and fear this amount could double post-merger.

Praveen Kumar, a resident of Peerzadiguda, voiced common concerns: "There is apprehension among locals that, after the merger, taxes could double." This sentiment reflects the financial anxiety prevailing in municipalities that currently benefit from lower tax rates.

Universal Concern: Loss of Local Accessibility

Despite differing opinions on tax implications, Residents' Welfare Associations across all 27 municipalities share a common worry about reduced access to local officials. Residents value their current municipal staff for being approachable, responsive, and familiar with hyperlocal problems.

Narendra Babu, General Secretary of the All Colonies Federation of Bandlaguda Jagir municipal corporation, explained: "Currently, local municipal staff are known to be easily reachable and responsive to community complaints. Whenever there is an issue — roads, drainage or garbage — our officials respond immediately. With the GHMC, we fear our problems will get buried."

Residents anticipate that the GHMC's centralized administrative style could slow down grievance resolution. They worry that zonal commissioners, typically IAS officers, may lack the bandwidth to address neighborhood-level concerns effectively, forcing residents to visit zonal offices even for minor complaints with no guarantee of prompt resolution.

The proposed merger presents a complex scenario where financial benefits for some come at the potential cost of administrative efficiency and local accountability for all affected residents.