HYDERABAD: With the pending tax dues from private and commercial properties as well as various government entities crossing Rs 8,000 crore, the Greater Hyderabad Municipal Corporation (GHMC) is likely to fall short of its tax collection target for the 2022-23 financial year.
According to officials, more than 50 per cent of this amount is accrued interest on total dues.
Total arrears owed by citizens and government entities to date is Rs 3,000 crore while the remaining Rs 5,000 crore is the arrears accumulated over the years. A majority of these arrears are pending with government entities.
While non-tax revenue primarily comprises trade licencing and advertising fees levied by the civic body within its limits, over 90 per cent of GHMC’s revenue comes from property tax collections. From April 1, 2022, to March 7, 2023, the civic body has managed to collect Rs 1,522 crore as property tax against the target of Rs 2,000 crore for FY 2022-23.
No OTS scheme
Officials said there may be a shortfall of at least Rs 200 crore in meeting the target. However, the civic body is hoping for improved collections in the last few weeks of the fiscal year. The GHMC faces a significant challenge in collecting tax from defaulters as the financial year draws to a close in just three weeks. Additionally, there is no One Time Settlement (OTS) scheme this time for clearing the pending arrears, which adds to the civic body’s problems.
Previously, the government launched OTS scheme across all Urban Local Bodies (ULBs) and allowed a waiver of 90 per cent of accumulated interest arrears on property tax upon clearing the entire arrears at one go.
As per GHMC data, the civic body collected Rs 1,029 crore in property tax in FY 2015-16. With a few weeks left, it has already accumulated over Rs 1,522 crore till March 7, pointing to the rise in collections over the last seven years, registering consistent growth. At present, there are around 17 lakh taxpayers in the GHMC region, including 13 lakh residential and 4 lakh commercial property taxpayers. Daily reminders are being sent to ensure that people pay taxes in time.
Officials said that bill collectors and tax inspectors are going door-to-door frequently and urging people to clear their tax dues in time. Property owners can pay tax at citizen service centres, via online modes, e-Seva centres and also to bill collectors, they added.