The Greater Hyderabad Municipal Corporation (GHMC) is considering a system allowing property owners to pay taxes monthly instead of annually, aiming to ease financial pressure. The proposal would offer 12 equal instalments, particularly for properties with taxes over INR 3,000. GHMC expects to collect INR 150-170 crore monthly, ensuring a steady cash flow for city development projects. With 1.9 million property tax assessments, GHMC aims to reduce unpaid taxes by making payments more manageable. This initiative aligns with GHMC's goal to modernise revenue collection and improve tax compliance while supporting ongoing urban development.
The Greater Hyderabad Municipal Corporation (GHMC) is considering the introduction of a system that would allow property owners to pay their property taxes on a monthly basis. This proposal is designed to ease the financial burden on property owners, who currently have to make a lump sum payment once a year. The new system aims to spread out these payments over 12 equal instalments, making it more manageable for taxpayers. GHMC officials have confirmed that they are currently working on the guidelines and necessary amendments to the property tax regulations to facilitate the shift to monthly payments. Under the proposed system, taxpayers would benefit from the option of smaller, more frequent payments, reducing the pressure of paying a large amount at once.
Officials believe this system would not only ease the burden on residents but also help the GHMC manage its finances more effectively. By collecting monthly instalments, the civic body expects to generate between INR 150 crore and INR 170 crore each month, which could be used to support ongoing development projects in the city. This steady stream of revenue would be beneficial for GHMC, allowing it to maintain a more consistent cash flow throughout the year.
A senior official from the GHMC's taxation wing explained that the government had instructed them to develop the necessary framework for implementing the revised tax structure. The official noted that while the option for monthly payments might not be available for properties with annual taxes as low as INR 101, it would be offered for those with annual taxes exceeding INR 3,000. Additionally, the official mentioned that GHMC was considering whether to make monthly property tax payments compulsory or to offer them merely as an option. There was also a possibility that annual payments could be phased out entirely, leaving only monthly payments available in the future.
Currently, there are approximately 1.9 million property tax assessments in Greater Hyderabad, including 1.2 million residential properties and 700,000 commercial properties. However, over 200,000 property owners still have outstanding tax dues. By introducing a monthly payment system, GHMC hopes to reduce the accumulation of unpaid taxes, which often happens when property owners are unable to pay the full lump sum. In the financial year 2023-24, GHMC collected INR 1,917 crore in property taxes, marking an increase of INR 257 crore compared to the previous year. For the financial year 2024-25, GHMC has set a target of INR 2,400 crore and has already collected INR 1,190 crore as of September 18 starting from April 1.
The proposed changes are part of GHMC's broader effort to modernise its revenue collection methods and make the process more efficient for both the civic body and residents. By allowing property owners to pay their taxes in smaller, monthly instalments, GHMC hopes to increase compliance and reduce the number of overdue accounts. Looking ahead, the implementation of a monthly payment system could bring long-term benefits to both property owners and the civic body. For residents, it would mean a more manageable way to stay up-to-date with their taxes, while for GHMC, it could lead to improved cash flow and the ability to fund more development projects across the city. The success of the proposed system will depend on how well it is received by property owners and how efficiently the GHMC can implement and manage the new payment structure.
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