Hyderabad: Property owners across Hyderabad could soon face higher property tax if the Telangana Government implements the proposed Core Urban Region (Integrated Governance) Bill, 2026, commonly known as the CURE Bill. One of the most significant changes proposed in the draft legislation is the replacement of the existing Annual Rental Value (ARV)-based property tax system with a Capital Value System (CVS).
Under the proposed system, property tax would be calculated based on the market value of a property rather than its annual rental value. Municipal officials believe this could substantially increase tax collections, with many property owners likely to see a higher tax burden if the proposal is implemented.
What Is Changing?
The existing property tax system in Hyderabad is based on the Annual Rental Value (ARV), where tax is calculated using the estimated rental income of a property. The proposed Capital Value System instead links property tax to the property’s market value, a model already adopted in several major Indian cities.
Since property prices have appreciated significantly across Hyderabad over the past two decades, the new formula could result in higher property tax for residential, commercial and mixed-use properties.
Part of a Larger Civic Reform
The draft legislation has been introduced as part of a comprehensive overhaul of Hyderabad’s urban governance framework. It seeks to replace the nearly 70-year-old Hyderabad Municipal Corporations Act, 1955, with a modern legal framework designed for the rapidly expanding metropolitan region.
The proposed law aims to establish a unified governance structure covering the Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC) and Medchal Municipal Corporation (MMC), while allowing each corporation to continue handling day-to-day administration.
Public Suggestions Open Till July 24
The Telangana Government has placed the draft Bill in the public domain and invited suggestions from citizens, Resident Welfare Associations (RWAs), industry bodies and other stakeholders. Feedback can be submitted through the official websites of the respective municipal corporations until July 24, 2026.
Several New Digital Governance Reforms Proposed
Besides changes to property taxation, the CURE Bill proposes a wide range of governance reforms aimed at simplifying civic administration and improving service delivery.
Among the major proposals are a single integrated online portal for civic services, digital approvals, online notices, a Common Billing and Payment System covering multiple municipal services, and a dedicated CURE Appellate Authority for faster grievance redressal.
The Bill also proposes GIS-based street planning, underground utility corridors, deemed approvals for building permissions, and a single trade licence for businesses to reduce regulatory complexity.
Climate, Traffic and Heritage Among Key Focus Areas
The draft legislation proposes the creation of several statutory bodies to improve coordination across Hyderabad’s civic ecosystem. These include a Climate Action Cell, Traffic Management and Road Safety Authority, Heritage Committee, Food and Nutrition Committee, and a Utility Coordination Committee.
The Climate Action Cell would focus on initiatives such as renewable energy, waste reduction, urban forest restoration, lake conservation and water neutrality as part of Hyderabad’s long-term sustainability goals.
CURE Governance Council
The proposed Bill also seeks to establish a CURE Apex Governance Council and an Executive Committee, both chaired by the Chief Minister, to coordinate planning and governance across Hyderabad’s expanding metropolitan region.
Additionally, HYDRAA has been assigned responsibilities related to the protection of lakes, drains and government lands under the proposed framework.
Old Provisions to Be Removed
The legislation also recommends removing several outdated provisions inherited from colonial-era municipal laws, including regulations relating to bullock carts and stray cattle on city roads, reflecting Hyderabad’s transformation into a modern metropolitan city.
Major Civic Overhaul in Seven Decades
If enacted, the CURE Bill, 2026 would represent the most significant reform of Hyderabad’s civic governance system in nearly 70 years. While the proposed Capital Value System for property tax has attracted considerable public attention, the Bill also aims to modernise urban planning, digital governance, infrastructure development and metropolitan coordination to support Hyderabad’s future growth.
