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The Ghaziabad Municipal Corporation (GMC) has initiated a crackdown on more than one lakh property tax defaulters by imposing a 12% fine on unpaid dues. Despite collecting approximately INR 609 crore in the 2024-25 fiscal year, the civic body reported that nearly a quarter of the city's properties had not cleared their house, water, or sewer tax obligations. Earlier rebate schemes failed to yield the desired response, prompting stricter measures. With the tax assessment system now linked to circle rates and other location-based factors, residents are also set to witness a rise in their annual tax bills.
To curb tax evasion and boost civic revenues, the Ghaziabad Municipal Corporation (GMC) has decided to impose a 12% penalty on more than one lakh property owners who failed to clear their dues for the financial year 2024-25. According to civic officials, these defaulters, largely from high-rise societies in areas such as Indirapuram and Siddharth Vihar, will soon receive fresh notices demanding payment along with the penalty. Advertisement
The initiative follows GMC's underwhelming response to a rebate scheme introduced earlier this financial year to encourage timely payments. Under the scheme, taxpayers were offered a 10% discount on dues during October, which was reduced to 5% for November and December. The deadline for availing these rebates was extended until the end of January, but even so, a large number of residents failed to make payments by the March 31 cut-off.
As a result, authorities have now shifted focus from leniency to enforcement. Sanjeev Sinha, Chief Tax Assessment Officer at GMC, indicated that the civic body would begin sending out notices to all defaulters shortly. He mentioned that if dues are not cleared within the stipulated timeframe, stricter measures would follow.
GMC's total revenue collection for the year stood at INR 609 crore, with nearly INR 350 crore coming from house, sewer, and water taxes. However, out of the estimated 4.5 lakh properties in the city, over one lakh were found to be in default.
To streamline the collection process, the corporation has digitised property tax payments, allowing residents to pay dues for house, sewer, and water taxes online. In a significant policy update earlier this year, the GMC board approved a proposal to link tax assessments with the District Magistrate's circle rates, shifting away from earlier methodologies.
Tax liability is now being calculated based on the Annual Rental Value (ARV) model, with rates determined by the location and the width of the road adjoining the property. For instance, properties located along roads 24 metres or wider will be taxed at INR 4 per sq ft, while those on roads measuring between 12 and 24 metres will face a rate of INR 3.2 per sq ft.
This new approach is expected to raise annual tax bills by around INR 4,000 to INR 5,000 for most residential properties, starting from the current fiscal. The change aligns with GMC's broader goals of ensuring fair and consistent tax contributions across different types of properties in the city.
The move comes amid increasing pressure on urban local bodies to improve revenue mobilization and fund infrastructure upgrades. In previous years, the GMC has struggled with uneven compliance and mounting arrears, especially from large residential complexes. Linking tax assessments to circle rates and introducing a location-based slab system is expected to create a more transparent and equitable tax structure.
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