HYDERABAD: A new system to pay property tax on a monthly basis is being mulled by the Greater Hyderabad Municipal Corporation (GHMC). The proposal is aimed at reducing the financial burden on owners who currently have to pay a lump sum every year.
The GHMC is currently working on the guidelines and amendments to property tax regulations to incorporate the monthly payment option. Under the proposed system, property taxes will be divided into 12 equal instalments, making it more manageable for taxpayers, officials said.
According to GHMC officials, this new monthly payment option for property tax will be advantageous for both residents and the civic body. Apart from easing the financial burden on owners by allowing them to pay their taxes in smaller instalments and also reducing the accumulation of tax arrears given the lump sum amount once a year, it will also benefit GHMC in carrying out development work in the city as they could collect Rs 150 crore to Rs 170 crore every month.
“The govt has asked us to develop the required framework for implementing the revised tax structure. We may not accept monthly property tax payments for amounts as low as Rs 101 annually, but focus on taxes exceeding Rs 3,000 annually. We are deliberating on whether to make monthly property tax payments compulsory or provide them as an option. We are even considering the possibility of eliminating the choice of annual payments altogether,” said a senior official in GHMC taxation wing.
There are 19 lakh property tax assessments in Greater Hyderabad which includes 12 lakh residential and 7 lakh commercial. However, over 2 lakh property owners have outstanding property tax dues, officials said.
During FY 2023-24, GHMC registered Rs 1,917 crore in property taxes, which is Rs 257 crore more compared to 2022-23. For FY 2024-25, GHMC has set a target of Rs 2,400 crore and has collected Rs 1,190 crore so far between April 1 and Sept 18.
Source Homevior.in
