HYDERABAD: Decks have been cleared for collection of profession tax by the Greater Hyderabad Municipal Corporation (GHMC).
Chief minister K Chandrasekhar Rao gave green signal at a meeting with officials of different departments held here two days ago. Currently, the commercial taxes department is collecting the profession tax.
KCR also directed the commercial taxes department to release the collected entertainment tax from cinema theatres to GHMC on weekly/monthly basis through online system. To collect the profession tax, GHMC has been continuously insisting on the state government to transfer the powers from the CT department to GHMC to mop up finances to fuel the growth of Hyderabad. The CT department is annually collecting around Rs.300 crore and is transferring 90 per cent of the collected amount to the GHMC.
“If the government gives permission, then in the first year itself the GHMC’s collection of profession tax can cross the Rs.500-crore mark as it has got all available data including geographical information system (GIS) and manpower to collect the amount,” GHMC officials told Express.
“GHMC is currently collecting property tax, trade licence and advertisement fee successfully. If we want to make Hyderabad a world-class city, we will need funds. So, we have been requesting the government to give us permission to collect profession tax too. The chief minister is kind enough to agree and gave us permission,” the officials added.
They said the commercial taxes department was not concentrating on 100 per cent collection as profession tax was just another tax component for them. As per commercial taxes department records, there were only 50,000 professionals, employees and traders paying profession tax in the core area of the city but the number could be more than a lakh, the GHMC officials said. Similarly, only 15,000 lawyers have been paying the tax whereas the number of practising advocates is over 40,000 in Hyderabad.
Nearly 20 professions come under the tax net. Doctors, lawyers, architects, charted accountants, engineers, IT professionals, journalists and others who have been in the field for more than five years have to pay Rs.2,000 to Rs.2,500 per annum.
ENTERTAINMENT TAX: The GHMC is hopeful of receiving the entertainment tax share collected by the CT department from cinema halls. For last few years it has not been getting its due share of Rs.50 crore from the the CT department.
GHMC officials said that about 90 per cent of the theatres in the city issue tickets online and this becomes handy to know how many tickets are sold online by the theatres and multiplexes.
The commercial taxes department can make online transfer of the entertainment tax to the GHMC on weekly or monthly basis. Online account between the two departments will be opened for transfer of the entertainment tax share.
Nearly 20 professions come under the tax net. Doctors, lawyers, architects, charted accountants, engineers, IT professionals, journalists and others who have been in the field for more than five years have to pay Rs2,000 to Rs2,500 per annum.