HYDERABAD: There is growing criticism among commercial property owners against the GHMC and the Municipal Administration and Urban Development Department (MAUD) for not extending a 5 per cent tax rebate under the Early Bird Scheme (EBS) for property owners whose annual property tax demand is over Rs 30,000.
Though the owners of commercial properties whose annual bill is more than Rs 30,000 are willing to pay the tax for the financial year 2020-21 under the EBS, the opportunity is being denied to them. The move would seriously impact tax collections at a time when the State Government is already grappling with a financial crisis owing to Covid-19.
Apart from 2.5 lakh commercial properties, 50,000 mixed properties and another 10,000 residential properties whose annual demand (bill) is more than Rs 30,000 would be deprived of the five per cent tax rebate under the scheme. As of now, there are 13 lakh residential properties which are eligible for the five percent rebate under EBS.
As per the Section 264 (3) of GHMC Act, 1955, the Early Bird Scheme clearly mentions providing five per cent rebate to tax payers belonging to all categories across the State; residential, commercial and mixed. Instead of implementing the rule laid down in the Act, the MAUD is implementing the instructions issued by Chief Secretary Somesh Kumar during a meeting held in January this year.
MAUD sources say the State government is of the opinion that commercial property owners are wealthy and therefore need no concessions. The MAUD issued a memo on Thursday directing the GHMC to implement the Early Bird Scheme in GHMC for residential properties for the year 2020-21 capping the annual property tax dues at Rs 30,000. The EBS which began on April 8 will continue up to May 31, 2019.