With reference to the Core Urban Region (Integrated Governance) Act, 2026 (CURE Act), consider the following statements: 1. The Act shifts property tax to a Capital Value System. 2. The Act grants elected councils the power to increase taxes. 3. The Act replaces the Greater Hyderabad Municipal Corporation Act, 1955. Which of the statements given above is/are correct?

CURE Act shifts property tax to Capital Value System, potentially doubling CMC taxes

GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims + Mains· 2 October 2026

Fiscal Federalism and municipal governance: a GS3 case study on taxation policy and local autonomy.

Why in news

The Core Urban Region (Integrated Governance) Act, 2026 (CURE Act) replaced the Greater Hyderabad Municipal Corporation Act, 1955, shifting property tax to a Capital Value System.

Background

The CURE Act governs the Greater Hyderabad Municipal Corporation (GHMC), Malkajgiri Municipal Corporation, and Cyberabad Municipal Corporation (CMC). The new legislation removes the power of elected councils to increase taxes.

Facts for Prelims

Act / BillCURE Act: Core Urban Region (Integrated Governance) Act, 2026
Act / BillGHMC Act, 1955: Replaced by the CURE Act on October 2, 2026
FactThe CURE Act shifts property tax to a Capital Value System
FactThe CURE Act potentially doubles taxes in the Cyberabad Municipal Corporation (CMC)

Prelims practice question

With reference to the Core Urban Region (Integrated Governance) Act, 2026 (CURE Act), consider the following statements:

The Act shifts property tax to a Capital Value System.
The Act grants elected councils the power to increase taxes.
The Act replaces the Greater Hyderabad Municipal Corporation Act, 1955.

Which of the statements given above is/are correct?

(a)2 only
(b)1 and 2 only
(c)1 and 3 only
(d)1, 2 and 3

Show answer

Answer: (c) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: The legislation removes the power of elected councils to increase taxes.

For Mains

Q. Discuss the implications of shifting property tax to a Capital Value System on urban governance and municipal fiscal autonomy.

Dimensions to cover in your answer

Fiscal autonomy: Removal of elected councils' power over tax increases limits local democratic oversight
Revenue volatility: Capital Value System shifts tax burden based on asset valuation rather than rental yield

Keywords: Fiscal Federalism · Municipal Governance · Capital Value System · Taxation Policy

Read the full news →Report a mistake in this note Source: The Hindu ↗Also: GS2 · Bills, Acts & ordinances Also: GS2 · Panchayati Raj & urban local bodies

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