Hyderabad: The row over total tax collection in areas controlled by IALAs (Industrial Area Local Authorities) is likely to escalate with the civic body deciding to go ahead with collection of tax in these areas. IALAs have been opposing the GHMC’s move stating that it has been their right for over 20 years to collect taxes and any move to annul it will be resisted tooth and nail.

Chief Minister K. Chandrasekhar Rao is expected to take the final call on the controversy. Representatives of these industrial units had also met industries minister Jupally Krishna Rao and complained to him of the GHMC’s moves “to usurp their rights”.

“For twenty years, we have maintained roads which are better than the GHMC’s. Our water supply system is good. We also have an effective solid waste management system. We pay them a quarter of our annual income. Yet they want total control,” said Telangana Industrial Forum president Sudhir Reddy.

IALAs were conceived in 1994 for industrialisation in the suburbs. About 14 IALAs were identified and given exclusive powers which were amended by the APIIC in 2013. Rules includes 59.8 per cent of the total income to IALAs, 35 per cent to the GHMC and 8 per cent for libraries with the other miscellaneous expenditure.

“Nearly Rs 60 crore tax should have been collected but only Rs 31 crore has been collected,” a senior tax collection officer of GHMC told Deccan Chronicle. However, TIF argues, “Once the IALA administration slips out of their hands, we will have go to the GHMC every day with a begging bowl.” GHMC commissioner Somesh Kumar could not contacted despite several calls.