The Greater Hyderabad Municipal Corporation (GHMC) has revealed that the state and central governments are the top defaulters of property tax in Hyderabad, with a combined outstanding balance of approximately Rs 6,000 crore. The state government owes over Rs 5,500 crore, while the Centre owes around Rs 300 crore. Despite regular demand notices, the government departments have only disbursed a small fraction of their outstanding payments. The GHMC is responsible for imposing property taxes in Hyderabad, which contribute to local amenities and services.
The Greater Hyderabad Municipal Corporation (GHMC) has revealed that the state and central governments are currently the top defaulters of property tax, with a collective outstanding balance of approximately Rs 6,000 crore. The outstanding debt of the state amounts to more than Rs 5,500 crore, while the Centre owes approximately Rs 300 crore.
In the previous financial year, despite having substantial outstanding payments, the duo only disbursed a trifling sum of Rs 42.25 crore. According to the GHMC property tax information for the 2022-23 period, the state government departments and undertakings contributed Rs 11.10 crore and Rs 7.69 crore, respectively, whereas the corresponding amount for the Centre was Rs 15.82 crore and Rs 7.64 crore. This information was revealed during the general body meeting.
According to officials, the total amount of unpaid property taxes owed to the GHMC increases significantly to around Rs 8,000 crore when the outstanding charges from both residential and commercial properties are consolidated. Despite the GHMC Commissioner's statement that demand notices are regularly issued to government departments every three months, there has been no significant outcome from the initiative.
Although the single tax payment program has effectively decreased outstanding payments, a majority of these debts belong to government organizations that persist as leading perpetrators of tax evasion. Several key state government departments, including the Secretariat, Niloufer Hospital, Central Jail, BRK Bhavan, and MLA quarters, are among the leading offenders when it comes to failing to pay property taxes.
The local government has yet to obtain unsettled funds from the authorities, such as a percentage of the road tax, alterations, and registration charges. Since the division, there has been a minimal amount of funding allotted to it in the budget.
Property taxes are levied on property owners and are a major source of income for state governments. Property tax funds maintain local amenities such as roads, sewage, parks, and public toilets. Micromanaging every step requires the state government to delegate property tax to municipalities, causing differences in levy, computation, and payment.
The task of imposing property taxes in Hyderabad lies with the GHMC, which serves as the city's governing body. Property tax is required to be paid twice a year to GHMC. The applicable deadlines for the above are on 31st of July and the 15th of October. If GHMC property tax payment is delayed, a penalty of 2 percent per month will be imposed on the outstanding amount. The funds collected are put to good use by enhancing the quality of public services. The property tax is charged based on the yearly rental value of the property. The GHMC's method of taxation is structured according to varying levels of income.
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