Property tax settlement scheme nets increased revenue in GHMC

Amid Covid-19 pandemic, Greater Hyderabad Municipal Corporation (GHMC) has chalked out ways to generate instant revenue. Under the one-time amnesty scheme which offers discount on property tax arrears, GHMC was able to generate Rs 248 crore within two months (August 1 to October 31). A total of 1,10,442 property tax arrears were cleared under the scheme.

To further fill its coffers, the civic body extended the deadline to November 15. Despite Covid-19, the civic body collected around Rs 198.04 crore more property tax this year (till October). In 2019-20, Rs 938.70 crore property tax was collected (till October) and this year (2020-21), the property tax collected stands at Rs 1,136.74 crore (till October 31), which was collected from 9,23,988 property owners.

According to civic officials, the one-time amnesty scheme was extended as they noticed business is bouncing back. “As business is bouncing back, we are expecting that more property owners will come forward and pay the arrears,” said a GHMC official.

Under the scheme, property owners, who have property tax dues with interest, need to pay only 10% of their accumulated interest along with principal up to the 2019-2020 financial year. As per GHMC records, 5.64 lakh property owners have to pay Rs 2,495.62 crore property tax arrears (including interest). In a release, GHMC stated that this is the last time that one-time scheme is being extended.

Commercial and residential property owners welcomed the move. “It is a good time to extend the scheme as business is back on track. Discount on tax arrears can be treated as a perk to businessmen and property owners from government after lockdown,” said Faraan Rokadia, managing director of Luxury Ridez, Jubilee Hills.

It’s not only GHMC, the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) has also chalked out plans to increase its revenue. On the request of HMWS&SB, the Municipal Administration & Urban Development (MA&UD) department has extended One-Time Settlement (OTS) from November 1 up to November 15, to collect water dues from consumers.

The water board had earned Rs 241.02 crore in the OTS launched between August 1 to October 31.